FCT-IRS Generates N252.8bn, Surpasses 2024 Target

The Federal Capital Territory Internal Revenue Service (FCT-IRS) revealed that it generated over N252.8bn in revenue during the 2024 fiscal year, which represents a 19.8 per cent increase from the N211.1bn recorded in 2023.

The Acting Executive Chairman of the Service, Michael Ango, who disclosed this during a press conference held on Thursday in Abuja, said the milestone represents 101 per cent of the agency’s target of N250.2bn for the year, with 11 days still left in the year.

The Acting Executive Chairman of the FCT-IRS, during his first public interaction with the press since his appointment in August, attributed the achievement to strategic reforms, improved administrative processes, Staff efforts, management, and various stakeholders within the Federal Capital Territory (FCT).

“As you may be aware, the FCT-IRS reported total revenue collection of N211,100,288,136.36 for 2023 fiscal year from all sources. I am pleased to report that as at close of business yesterday Wednesday 18th 2024, we have a total collection of N252,825,487,775.71 which represents a 19.8% increase on last year’s collection and is about 101% of our target of N250.2bn for 2024.

“We are pleased to report this significant growth in revenue collection, which reflects the hard work of our staff, support from FCT agencies, and collaboration with area councils and other stakeholders. With a few days remaining in 2024, we anticipate further growth in our revenue figures before the year closes,” Ango stated

Ango, while speaking on key reforms driving revenue growth, said he has implemented sweeping reforms to enhance the efficiency and transparency of the FCT-IRS, which include a review and expansion of the organizational structure, the establishment of new departments such as Audit, Debt Management, and Enforcement, and the segmentation of tax operations into two directorates, which is focused on ministries, departments, and agencies (MDAs) as well as individuals, enterprises, and partnerships.

“In the FCT, we collect taxes from individuals and through corporate entities, including MDAs and international organizations. By creating specialized directorates, we are ensuring better compliance and tailored strategies for different taxpayer segments,” Ango explained.

He noted that a significant highlight of the reforms is the creation of a High Net Worth Individual (HNI) Unit, aimed at taxing individuals earning ₦N25m and above annually from any source, including employment, businesses, dividends, and rents.

Ango revealed that over 10,000 high-net-worth individuals had been identified, with many already responding to notices to regularize their tax status.

“We have strengthened our collaboration with the Nigerian Financial Intelligence Unit (NFIU) to enhance compliance among high-net-worth individuals in Abuja. This initiative has already yielded promising results, and we will continue to build on it in 2025.

“We are excited about the favourable response from this segment, and we believe it will significantly boost our revenue base,” he noted.

Ango further said, in line with global best practices, the FCT-IRS has prioritized harmonizing revenue administration across the territory. The initiative he said, will centralize revenue collection points for taxes, levies, and fees, and provide a single interface for taxpayers while ensuring transparency and accountability.

He announced that a definitive agreement with area councils to begin this system in January 2025 has been finalised, and stressed that the revenue collected will remain theirs, with the IRS merely acting as an aggregator. He also noted that the agency is addressing infrastructural challenges.

“By mid-2025, all tax offices will be relocated to more conducive premises, equipped with modern tools, including laptops and printers for staff. Our target is to ensure a fully automated, technology-driven tax administration system by the end of next year,” Ango stated.

He however said that training has been a key focus area for the FCT-IRS, with over 52 programs conducted in 2024.

“Internally, we have focused on training. Over the course of the last year, we have carried out a minimum of 52 training programmes. That means every week we have trained our staff.

“Every staff of the FCT-IRS has gone on at least one training programme if not two or three over the course of the last one year. The reason why we have invested significantly in training is that we believe that we must have a workforce that is well-educated, that is well-trained, and so that when they interact with members of the public and ask you to pay your taxes or to pay any levies or fees, they are doing that from a position of knowledge,” Ango said amongst other things that has been improved.

The agency said it has also strengthened its collaboration with national and local bodies, including the Federal Inland Revenue Service (FIRS), the Nigerian Financial Intelligence Unit (NFIU), and the judiciary. These partnerships according to the agency have facilitated access to critical information, enhanced compliance, and bolstered enforcement efforts.

Furthermore, Ango outlined plans for more robust enforcement in 2025, which targets tax defaulters across all segments.

“We will send out notices, conduct audits, and, where necessary, impose sanctions, including filing criminal charges against defaulters. However, we will ensure taxpayers are properly educated on their obligations before enforcement begins,” he said.

The agency also noted plans to expand its payment infrastructure, with introduction of multiple gateways, including POS systems and kiosk offices in markets and parks, to ease tax compliance for low-income earners and those in remote areas.

Ango stated the role of tax revenue in supporting the FCT’s ongoing infrastructure projects, such as roads, schools, and hospitals but said the agency will focuse on collecting those enshrined in the laws like entertainment tax, stamp duty, capital gains tax and others.

According to him, Entertainment Tax will be 5 percent of any services consumed in restaurants, hotels, clubs, lounge, garden and Parks.

“We are not introducing new taxes but enforcing existing ones, ensuring that the resources needed for development are generated internally,” he clarified.

When asked about the revenue target for 2025, Ango said the projection has not been made but would be determined by higher authorities after due consideration of all relevant factors.

The Acting Executive Chairman expressed gratitude to President Bola Ahmed Tinubu for approving his appointment, and FCT Minister Barrister Ezenwo Nyesom Wike for his exceptional leadership and support. He also acknowledged the guidance of the Minister of State for the FCT, Dr. Mariya Mahmoud, and the collaboration of other governmental agencies and committees, including the Federal Inland Revenue Service (FIRS) and the Joint Tax Board.

Ango appealed to residents, businesses, and stakeholders to support the FCT-IRS’s efforts. “Our task is not easy, but it is essential for the growth and transformation of Abuja into a global city. Together, we can achieve this vision,” he added.