NEITI, the Nigeria Extractive Industries Transparency Initiative, has pledged to support the 2024 Tax Reform Bill’s legislative process by offering policy ideas, data-driven insights, and technical inputs.
According to NEITI, the bill aims to maximize resource advantages for all Nigerians while bolstering fiscal transparency and accountability.
The 2024 Tax Reform Bill, which is presently undergoing parliamentary review, is a daring attempt to modernize Nigeria’s tax system, according to NEITI Executive Secretary Dr. Orji Ogbonnaya Orji during the Rembinar Dialogue, which NEITI organized in cooperation with Order Paper Nigeria.
Dr. Orji said that after closely reviewing the law, NEITI recognizes its potential to boost compliance across a range of industries, including mining, oil, and gas, as well as to streamline legal frameworks and improve tax administration.
Proposal
To address the issues in the bill, NEITI has also offered strong recommendations to the National Assembly. Some salient features are the taxation of digital assets and non-resident entities to conform to international best practices, the consolidation of tax laws to enhance clarity and compliance, improved VAT administration, relief from double taxation, tax incentives for priority sectors, and more.
“While these provisions signal progress, we must also critically assess their impact on NEITI audits, revenue transparency, and sector-specific compliance,” Dr. Orji explained.
He raised several important issues for thought, such as how the new tax system will affect NEITI’s advocacy for accountability and openness and how to guarantee that extractive corporations completely report their tax liabilities.
Dr. Orji underlined the significance of consistent multi-stakeholder involvement to ensure that civil society organisations (CSOs), the commercial sector, and the media continue to be actively involved in monitoring the bill’s implementation and effects.
What To Note
The Rembinar Dialogue, which focused on “Tax Bills and the Implications for NEITI Audits,” was to provide a forum for fruitful discussions on resource governance, fiscal transparency, and accountability in Nigeria’s extractive industry.
- As Nigeria moves forward with substantial tax reforms meant to improve revenue mobilization and guarantee budgetary sustainability, Dr. Orji emphasized the importance of the conversation.
- According to him, the extractive industry remained the foundation of Nigeria’s economy, contributing significantly to government income and foreign exchange gains, making the conversation essential.
However, Orji claimed that enduring issues like tax fraud, revenue leaks, lax enforcement, and a lack of openness in fiscal regimes have weakened the sector’s capacity to promote sustainable development.
He claims that the 2024 Tax Reform Bill, which lawmakers are reviewing, is an audacious attempt to update Nigeria’s tax structure.
