Unable to generate N3.17tn in 2023, Nigerian govt targets N9.96tn from Petroleum Profit Tax in 2024

The Nigerian Government has set a target of generating a staggering N9.96 trillion from Petroleum Profit Tax (PPT) collections in 2024.

This is despite the inability of the agency to meet its target of N5.26 trillion for 2023. The agency generated N3.17 trillion in 2023, N2.09tr less than the target.

Despite this shortfall, the agency is optimistic of generating N9.96 trillion from PPT in 2024, an increase of N6.79tr.

This targeted revenue is outlined in recent data from the Federal Inland Revenue Service (FIRS).

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According to data from the Federal Inland Revenue Service (FIRS), the agency faced challenges in meeting its Petroleum Profit Tax (PPT) collection targets for 2023, achieving only around 60% of its projected goal. This shortfall positions PPT as one of the least successful areas in the FIRS tax collection efforts for last year, ranking it at the lower end of the performance spectrum.

Specifically, PPT emerged as the third lowest-performing tax category, only outpacing the Police Trust Fund (PTF) tax, which had a compliance rate of 26%, and the NASENI levy, with a collection efficiency of 31%. This data highlights the difficulties encountered in optimizing revenue from the petroleum sector within the broader context of tax collection challenges.

By Babajide Okeowo

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