The Nigeria Extractive Industries Transparency Initiative (NEITI) has committed to supporting the legislative process of the 2024 Tax Reform Bill by providing technical inputs, data-driven insights, and policy recommendations.
NEITI said it aims to ensure that the bill strengthens fiscal transparency, enhances accountability, and maximizes resource benefits for all Nigerians.
During the Rembinar Dialogue, convened by NEITI in collaboration with Order Paper Nigeria, NEITI Executive Secretary, Dr. Orji Ogbonnaya Orji, emphasized that the 2024 Tax Reform Bill, currently under legislative review, represents a bold effort to modernize Nigeria’s tax system.
Dr. Orji stated that NEITI has 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.
Recommendations
NEITI has also sent strong recommendations to the National Assembly on addressing concerns raised in the bill. Key highlights include the consolidation of tax laws to improve clarity and compliance, taxation of digital assets and non-resident entities to align with global best practices, stronger anti-tax avoidance measures, 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,” Dr. Orji said.
He posed several key questions for consideration, including how the new tax regime would impact transparency and accountability measures championed by NEITI, and how to ensure extractive companies fully disclose their tax obligations.
Dr. Orji emphasized the importance of sustained multi-stakeholder engagement, ensuring that civil society organizations (CSOs), the private sector, and the media remain actively involved in tracking the bill’s implementation and impact.
What you should know
The Rembinar Dialogue, with the topic “Tax Bills and the Implications for NEITI Audits,” was conceived as a platform to facilitate meaningful engagements on resource governance, fiscal transparency, and accountability in Nigeria’s extractive sector.
- Dr. Orji highlighted that the dialogue is crucial as Nigeria advances comprehensive tax reforms aimed at strengthening revenue mobilization 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.
