FIRS says tax contributes 70% of Nigeria’s Revenue

15 Nov FIRS says tax contributes 70% of Nigeria’s Revenue

The Federal Inland Revenue Service (FIRS) has said that receipts from tax now make up about 70 per cent of Nigeria’s total revenue. Executive Chairman of FIRS, Muhammad Nami, spoke in Abuja in a presentation titled, “Weathering Economic Turbulence,” at an interactive session with stakeholders.

He said while the fall in oil prices, reduction of production quota, and oil theft had reduced the country’s revenue to critical levels, tax revenue is has increased.

He said that Nigeria’s tax-to-Gross Domestic Product (GDP) ratio was currently about six per cent, compared to Egypt at 15 per cent, Ghana and Kenya at 17 per cent, and South Africa at 28 per cent.

The World Bank recommends a minimum of 15 per cent Tax to GDP ratio for economic growth and poverty reduction, he stated.