FIRS
By Tosin Ogunrinde
The Federal Inland Revenue Service (FIRS) has achieved a record-breaking tax collection of ₦47.39 trillion between October 2023 and September 2025, exceeding its target by 15% and representing a 115% performance rate. This impressive feat is attributed to the agency’s ongoing digital transformation initiatives, tax reforms, and enhanced compliance measures under the leadership of Executive Chairman Zacch Adedeji.
The revenue growth was driven largely by the non-oil sector, which contributed 76% of total collections, reflecting the government’s ongoing diversification and tax reform agenda. Non-oil taxes surged to ₦17.3 trillion, surpassing projections by 128% and accounting for 76% of total revenue collected within the review period. Key highlights in non-oil segments included non-import VAT reaching 137% of its target and import VAT hitting 131% of target, boosted by enhanced digital monitoring and compliance measures.
The FIRS collected ₦22.59 trillion between January and September 2025, meeting 120% of its target for the period and achieving 90% of its annual revenue goal of ₦25.2 trillion. The agency’s top contributors included Company Income Tax (32.6%), non-import VAT (23.2%), and Petroleum Profit/Hydrocarbon Tax (17.4%), followed by education tax, import VAT, and gas income.
The FIRS attributed its record-breaking performance to ongoing digital transformation initiatives, including the deployment of digital platforms such as the National Single Window and National E-Invoicing System, which have enhanced transparency, efficiency, and real-time tax tracking. The agency also highlighted the positive impact of the 2025 tax reform laws, which streamlined procedures and aligned Nigeria’s tax administration with international best practices.
Looking ahead, the FIRS indicated that it will transition to the Nigeria Revenue Service (NRS) effective January 1, 2026, broadening its mandate to include non-tax revenue collections from the Nigeria Upstream Petroleum Regulatory Commission (NUPRC). The agency expressed hope of meeting its internal target of ₦25.2 trillion by December 2025, an amount that is 37.6% higher than the figure captured in the national budget.
