Nigeria Targets 57% Increase in Tax Revenue for 2024

Nigeria anticipates a substantial increase in revenue collections this year as it implements plans to revamp its tax system, yielding positive results. The Federal Inland Revenue Service projects a 57% surge in revenue for 2024, reaching 19.4 trillion naira ($20.3 billion), compared to the previous year, as per information obtained by Bloomberg. This includes 9.96 trillion naira in tax revenue from oil and 9.45 trillion naira from non-oil revenue.

To achieve this revenue growth, the agency plans to enhance efficiency and tax compliance by restructuring its organization to focus more on taxpayers and further automating tax collection. The agency will also perform internal reallocations from oil to non-oil, responding to a 214% increase in the budgeted oil revenue for 2024 compared to the 2023 actual figures, while non-oil revenue only saw a 3% increase.

These measures supplement existing efforts to boost revenue, such as shifting more tax burden to affluent citizens, reducing corporate taxes, and introducing electronic invoicing for value-added tax.

President Bola Tinubu’s government aims to use increased revenue to support an ambitious reform program focused on accelerating growth in Nigeria, the most populous country in Africa, and lifting 100 million people out of poverty.

The government’s reliance on borrowing due to a low tax take has complicated efforts to manage debt, fund infrastructure, and support projects in education and health.