There are fundamental changes in Nigeria’s tax landscape with far-reaching impact on the economy and business performance in 2020 and beyond. As though the country was gearing up for the shocking fall in crude oil prices aggravated by the outbreak of the Novel Coronavirus (COVID-19), the taxation landscape was a beehive of activities in the preceding twelve months. As expected, the business community has continued to discuss the impact of the changes on the business environment and the economy at large.
For the first time in over 20 years, Nigeria has a new Finance Act 2019 (the Act). The Act makes sweeping changes to seven tax laws, showing strong indications that Nigeria is set for major transformation of its tax landscape. This came at the same time the country’s apex tax body, the Federal Inland Revenue Services (FIRS) welcomed its new Chief Executive. As expected with such change of guard, fresh ideas are being injected into tax administration with the ultimate aim of driving tax penetration, closing the gaps on tax default and raising the bar on revenue generation.
There is also renewed focus on taxation of multi-nationals and curbing illicit financial flows marked by the introduction of country-by-country reporting regulations, strengthening of transfer pricing regulations and demand for increased transparency in tax reporting. Also, Nigeria’s signing of the Africa Continental Free Trade Area (AfCFTA) agreement is another development milestone.
We examine the outlook and impact of the changes happening in Nigeria’s taxation landscape, with an in-depth analysis of each of the changes.
Please click on this link to explore our detailed report.