The Nigeria Extractive Industries Transparency Initiative (NEITI) has committed to support the Legislative Process of 2024 Tax Reform Bill by providing Technical Inputs, Data-Driven Insights and Policy Recommendations.
NEITI said the support aimed at ensuring that the 2024 Tax Reform Bill strengthened Fiscal Transparency, enhances Accountability, and maximises Resource Benefits for all Nigerians.
Orji Ogbonnaya Orji, Executive Secretary, NEITI said this on Monday during a Rembinar Dialogue, convened by NEITI in collaboration with OrderPaper Nigeria, a Civil Society Organisation (CSO)
The Rembinar Dialogue was conceived as a Platform to facilitate meaningful Engagements on Resource Governance, Fiscal Transparency, and Accountability in Nigeria’s Extractive Sector.
Orji said the Dialogue, with the Topic: “Tax Bills and the Implications for NEITI Audits” was crucial as Nigeria advanced comprehensive Tax Reforms aimed at strengthening Revenue Mobilisation and ensuring Fiscal Sustainability.
He said the Discussion became necessary because the Extractive Sector remained the backbone of Nigeria’s Economy, accounting for a substantial share of Government Revenue and Foreign Exchange Earnings.
Orji, however, said that persistent Challenges—such as Tax Evasion, Revenue Leakages, Weak Enforcement, and a lack of Transparency in Fiscal Regimes—had continued to undermine the Sector’s Potential to drive Sustainable Development.
According to him, the 2024 Tax Reform Bill, currently under Legislative Review, represents a bold effort to modernise Nigeria’s Tax System.
He said NEITI had carefully examined the Bill and acknowledges its potential to improve Tax Administration, streamline Legal Frameworks, and enhance compliance across various Industries, including Oil, Gas, and Mining.
The NEITI Executive Secretary said it had also sent strong Recommendations to the National Assembly on some Areas of Concerns to be addressed.
He listed Key Highlights of the Bill to include:
Consolidation of Tax Laws to improve clarity and compliance and Taxation of Digital Assets and Non-Resident Entities, aligning Nigeria with Global Best Practices.
Others are Stronger Anti-Tax Avoidance Measures, including Minimum Effective Tax Rates to curb Profit Shifting; Improvements in VAT Administration, Double Taxation Relief, and Tax Incentives for Priority Sectors.
“While these Provisions signal Progress, we must also critically assess their impact on NEITI Audits, Revenue Transparency, and Sector-Specific Compliance—which brings us to today’s Discussion,” he said.
Orji said that Key Questions for consideration should focus on how the new Tax Regime would impact the Transparency and Accountability Measures championed by NEITI.
“Are the Tax Administration Reforms aligned with our Extractive Industry Audit Framework? How do we ensure Extractive Companies fully disclose their Tax Obligations?
“While the Bill seeks to boost Government Revenues, are there Provisions to maintain Nigeria’s Competitiveness in attracting Extractive Sector Investments?
“What Safeguards should be introduced to prevent Over-Taxation from discouraging Long-Term Investments?
“How do we strengthen Enforcement Mechanisms to combat Tax Evasion, Illicit Financial Flows, and Profit Shifting by Multinational Corporations?
“What Role can Inter-Agency Collaboration play in improving Compliance and closing Revenue Leakages,” he queried.
The NEITI Secretary said it recognised the importance of Sustained Multi-Stakeholder Engagement, particularly in ensuring that CSOs, the Private Sector, and the Media remained actively involved in tracking the Bill’s Implementation and Impact.
Oke Epia, Founder/CEO of OrderPaper Nigeria, while expressing satisfaction with the Dialogue Series, lauded NEITI and the Participants on their Contributions towards the Legislative Process.
Epia, who underscored the need for a Concerted Engagement, said that this was not time to shy away from Dialogue’ because relevant Contributions were necessary for National Development in view of the 2024 Tax Reform Bill.
Also speaking, Haruna Yahaya, a Panelist, maintained that the new Tax Regime should comply with the Position of the Global Extractive Industries Transparency Initiative (EITI) Implementation.
Credit NAN: Texts excluding Headlines
