Tax
From The Report: Nigeria 2023
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Nigeria’s tax system has undergone a significant transformation due to the enactment of three annual finance acts, which have amended a total of 19 pieces of legislation, and 167 provisions of tax and fiscal laws – changes that have included a gradual shift from direct to indirect tax and a higher value-added tax rate. While many stakeholders have continued to advocate for a total overhaul of the regulatory framework, annual reviews of existing laws have led to attempts to align legislation with current economic realities, eliminate ambiguities and impediments to investment, and increase tax revenue. Although challenges to strengthening the regulatory framework remain, the ongoing reforms provide considerable scope for increased fiscal robustness.

This chapter contains an interview with Yomi Olugbenro, Partner and West Africa Tax Leader, Deloitte Nigeria.

Articles from this Chapter

Overview

Generating revenue: Regulatory framework and the push for deeper tax penetration
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The Nigerian tax system rests on constitutional provisions, which provide the basis for the allocation of taxation powers among the tiers of government and also serve as the bedrock on which the tax obligation of each citizen rests. The philosophy of the tax system is encapsulated in the National Tax Policy, with laws enacted at the federal, state and local government levels to highlight specific types of taxes and levies as well as administrative processes. Tax Ecosystem In recent years, there…

Analysis

Perspective shift: The benefits of annual finance acts on non-oil tax revenue
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Nigeria has a long-standing reliance on crude oil sales to generate revenue. However, the ongoing volatility in oil prices and the growing shift to alternative energy sources have made reliance on crude oil sales for fiscal planning unsustainable in the long term. The shortage of daily crude oil production in Nigeria is an additional challenge, thereby making revenue diversification and the shift to non-oil taxation critical. In 2019 the Nigerian government re-introduced the use of annual finance…

Interview

Rule of thumb: Yomi Olugbenro, Partner and West Africa Tax Leader, Deloitte Nigeria, on thriving in an evolving regulatory environment
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Interview:Yomi Olugbenro How can businesses stay abreast of the numerous changes in the country’s tax laws? YOMI OLUGBENRO: The updates to tax legislation are necessary because they help to align the laws with current realities. To stay abreast of these revisions, finance officers should undertake continuous training through webinars, and participate in capacity-building programmes and workshops aimed at improving their knowledge of the tax and regulatory environment, as well as seek professional…