The Chartered Institute of Taxation of Nigeria (CITN) recently convened its fourth virtual forum on the Economic Stabilisation Bill, focusing on the critical role of taxation in achieving Nigeria’s economic goals. Tax professionals, government representatives, and industry stakeholders gathered to dissect the proposed reforms, emphasizing the need for clear legislation, consistent regulatory enforcement, and meaningful collaboration to ensure the bill’s successful implementation. Experts underscored the potential of these reforms to bolster Nigeria’s revenue base while simultaneously fostering a conducive investment climate. The forum explored how the proposed changes align with existing frameworks like the Petroleum Industry Act (PIA), the Petroleum Profits Tax Act, and Production Sharing Contracts, all aimed at balancing revenue generation with incentives for investors in the petroleum sector.
A core theme of the forum revolved around the taxation of petroleum income and its restructuring within the 2024 Economic Stabilisation Bill. Alatoye Azeez, Managing Partner of Ascension Consultancy Services and Dean of the Extractive Industries Taxation Faculty at CITN, provided in-depth analysis on this topic. He advised upstream petroleum companies on the importance of adhering to tax laws while strategically optimizing deductions to minimize their tax liabilities. Azeez stressed the crucial role of maintaining accurate financial records and encouraged businesses to seek expert tax advice to mitigate potential financial risks. He further highlighted the significance of tax audits in guaranteeing transparency and accountability within the oil and gas sector, urging participants to deepen their understanding of the legislative and regulatory landscape governing petroleum taxation, particularly the hydrocarbon tax and petroleum profits tax.
The forum also addressed the delicate balance between legitimate tax planning and tax evasion. Emmanuel Okon, Assistant Director of the Oil and Gas Department at the Federal Inland Revenue Service (FIRS), cautioned against aggressive tax planning, emphasizing the sometimes blurred lines between acceptable practices and evasion. He advocated for stringent oversight to combat tax avoidance schemes that erode government revenue. This discussion reinforced the need for clear guidelines and consistent enforcement to ensure a fair and efficient tax system.
A recurring message from the forum was the necessity for continuous education and adaptation to the evolving tax landscape. A panel discussion featuring Olumide Esan, Partner at Deloitte, and Oluremi Olubamowo, Tax Manager at Shoreline Natural Limited, reiterated this point. They emphasized the importance of industry operators staying abreast of changes in tax regulations and actively supporting compliance measures. This proactive approach, they argued, is essential for fostering a more transparent and efficient tax system, ultimately benefiting both the government and the private sector.
CITN President Samuel Agbeluyi reaffirmed the institute’s dedication to professional development in the tax field. He announced upcoming specialized training sessions designed to simplify complex tax procedures and equip professionals with the necessary knowledge to navigate the intricacies of tax regulations. This initiative reflects CITN’s commitment to enhancing the expertise of tax practitioners and contributing to a more robust and informed tax system.
The forum served as a vital platform for dialogue and collaboration between key stakeholders in the Nigerian economy. It provided a space for open discussion on the proposed reforms, their potential impact, and the challenges of implementation. The consensus among participants was that consistent regulatory enforcement and a collaborative approach between government, industry, and tax professionals are essential for achieving sustainable economic reforms and fostering investor confidence. This collective effort is seen as crucial for maximizing the benefits of the Economic Stabilisation Bill and ensuring its contribution to Nigeria’s long-term economic stability and growth.
