Diversification of Sources of Revenue 4.3.5 Governments at the three tiers still rely, to a large extent, on the oil revenue. As part of the efforts by the Federal Government to diversify the sources of revenue, the Federal Inland Revenue Service has undertaken a number of reforms in the tax system. These include the adoption of a new tax policy, review of tax laws, widening of the tax net, modernization of operations, education and enlightenment of tax payers and registration of taxable persons. 4.3.6 Arising from these aggressive reforms, revenue from taxes has been on the increase. Table 3.0 shows the annual revenue growth from 2008 – 2010. 3.0 Percentage Annual Revenue Growth (2008 – 2010). Tax Type FG Targets Actual Collection Growth (%) 2008 2009 2010 2008 2009 2010 (N’B) (N’B) (N’B) (N’B) (N’B) (N’B) 1,536 639 1,203 2,061 939 1,480 -54.42 57.58 Non Oil Taxes 738 1,270 1,304 911 1,257 1,359 37.95 Total 1,909 2,507 2,972 2,196 2,839 -26.10 29.27 Oil Taxes 2,274 2009 2010 8.11 Sources: Federal Inland Revenue Service Report to NEPAD 4.3.7 A cursory look at the figures in table 3.0 shows that actual tax collections exceeded tax targets from 2008 to 2010. However, tax receipts reduced significantly in 2009 due to the fall in oil prices as a result of the global economic and financial crises. A growth rate of 29.27% of tax receipts was recorded in 2010. 43