NEITI Endorses 2024 Tax Reform Bill, Advocates for Modernized Tax System

By DAYO ADESULU

The Nigeria Extractive Industries Transparency Initiative (NEITI) has expressed strong support for the 2024 Tax Reform Bill, currently under consideration by the National Assembly. NEITI believes the bill has the potential to revolutionize Nigeria’s tax system by aligning it with global best practices and enhancing fiscal transparency.

NEITI’s Position on the Tax Reform Bill

In a statement issued by NEITI’s Acting Director of Communications & Stakeholders Management, Obiageli Onuorah, the agency outlined its position on the bill. The memo, signed by NEITI’s Executive Secretary, Dr. Orji Ogbonnaya Orji, was addressed to the National Assembly leadership and the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms.

Dr. Orji highlighted the bill’s capacity to:

• Streamline Nigeria’s tax administration.
• Broaden the country’s tax base.
• Enhance fiscal transparency and efficiency.

“A detailed review of the Bill revealed its potential to positively impact revenue generation, household livelihoods, job creation, and overall economic opportunities,” Dr. Orji stated.

Key Provisions of the Draft Tax Reform Bill

NEITI identified several innovative features within the proposed legislation, including:

• Consolidation of Legal Frameworks: The bill seeks to unify existing tax laws into a single framework.
• Digital Asset Taxation: Provisions for taxing digital assets to reflect evolving economic trends.
• Resident and Non-Resident Taxation: Measures to address the taxation of both resident and non-resident entities.
• Curbing Tax Evasion: Strong mechanisms to tackle tax evasion while promoting transparency.

Despite these positives, NEITI’s section-by-section review uncovered areas for improvement, particularly concerning the extractive industries—a sector central to the agency’s mandate.

Recommendations for Strengthening the Bill

NEITI made several recommendations to address gaps identified during its review:

• Harmonization of Federal and State Tax Laws: Sections 1 and 2 aim to unify tax legislation for individuals and legal entities but lack explicit guidelines to align federal and state tax laws.
• Transition Management: NEITI stressed the importance of managing the transition process carefully and conducting robust public awareness campaigns to prevent administrative confusion.

“The public debate generated by the Bill underscores the overwhelming interest by Nigerians and the need for greater clarity and trust in its provisions once passed into law,” the statement read.

Looking Ahead

As the bill progresses through the legislative process, NEITI remains committed to providing expert input and advocating for measures that strengthen Nigeria’s fiscal framework.