BY SAM OTUONYE
The Nigeria Extractive Industries Transparency Initiative (NEITI), and leading non-governmental organization – OrderPaper, as well as extractive industry experts have renewed strong support for the proposed 2024 Tax Reform Bills currently before the National Assembly.
According to a statement on Wednesday ,by Obiageli Onuorah, acting Director of Communications and Stakeholder Management at NEITI, they emphasized that the bills would enhance Nigeria’s tax framework, strengthen revenue mobilization, and ensure fiscal sustainability in line with global best practices.
These views were shared at the inaugural Rembinar Series on the Tax Bills and Implications for NEITI Audits, hosted by OrderPaper in collaboration with NEITI. The event focused on the potential impact of the proposed Tax Reform Bill on Nigeria’s economy and extractive sector.
NEITI’s Executive Secretary, Dr. Orji Ogbonnaya Orji, in his opening remarks, highlighted the critical need for fiscal transparency, resource governance, and accountability in Nigeria’s extractive industries. He noted that tax evasion, revenue leakages, and weak enforcement mechanisms continue to hinder the sector’s full revenue-generating potential.
“The extractive sector remains the backbone of Nigeria’s economy, contributing significantly to government revenue and foreign exchange earnings. However, persistent challenges—such as tax evasion, revenue leakages, weak enforcement, and a lack of transparency in fiscal regimes—have limited its potential to drive sustainable development,” Dr. Orji stated.
He underscored key provisions of the 2024 Tax Reform Bill, including:
•Consolidation of tax laws to ensure clarity and compliance.
•Taxation of digital assets and non-resident entities to broaden the tax base.
•Stronger anti-tax avoidance measures to curb revenue leakages.
•Improvements in VAT regulations and business tax incentives to encourage investment. Dr. Orji also stressed the importance of assessing the bill’s impact on NEITI audits, revenue transparency, and sector compliance, while reiterating NEITI’s commitment to providing technical support, data-driven insights, and policy recommendations to enhance fiscal accountability.
On collaboration for Fiscal Sustainability, Mr. Oke Epia, CEO and Founder of OrderPaper, emphasized that the Rembinar series would broaden the scope of resource governance by integrating emerging issues such as energy transition, climate change, tax reform, beneficial ownership transparency, and contract transparency.
He explained that the Rembinar initiative is an extension of Remtrack, a tool designed to monitor NEITI audit findings and recommendations, now expanded to cover broader governance challenges.
“These discussions have profound implications, not just for NEITI but for Nigeria as a whole, especially given the evolving governance landscape within the extractive sector,” Mr. Epia noted.
Contributing to the discussion, a Tax Expert, Mr. Haruna Yahaya, CEO of Haruna Yahaya & Co. and Member of the Presidential Committee on Fiscal Policy & Tax Reforms, provided an in-depth analysis of the tax bills, emphasizing their potential to Simplify tax processes and enhance taxpayer transparency, reduce revenue leakages through improved enforcement mechanisms and centralize tax collection under the newly proposed Nigeria Revenue Service (NRS).
He highlighted specific provisions affecting NEITI’s work, particularly in the oil and gas sector, where new tax regulations include:
• Chapter 3, Sections 65-88 (Parts 1-3): Changes to royalty payments for deepwater operations.
• Part 1 (Sections 65-88): Hydrocarbon taxation regulations.
• Part 2 (Sections 89-100): Updates to Petroleum Profit Tax (PPT).
• Part 3 (Sections 101-116): Adjustments to Deepwater and Inland Basin Production Sharing Contracts (PSCs).
“These changes directly impact NEITI, as the agency plays a crucial role in validating payments and receipts between companies and the government,” Mr. Yahaya explained.
For the mining sector, he noted that new materiality thresholds in the tax bills would determine which production levels are taxed and which remain exempt—ensuring fairer taxation across the industry.
On the implications of the Tax Reforms on Transparency in Revenue Collection, Dr. Mike Uzoigwe, a Policy Expert on Natural Resource Governance, explained that the Nigeria Revenue Service (NRS) would act as a one-stop-shop for tax collection, streamlining the process and enhancing transparency in revenue generation.
“With more revenue generated comes the greater need for transparency,” Dr. Uzoigwe stated, emphasizing that NEITI’s audits must capture timely and accurate data to ensure effective oversight of government revenues.
He called for: Stronger stakeholder engagement to enhance fiscal accountability. Innovative digital tools to improve transparency in Nigeria’s extractive sector.
Closer collaboration between NEITI and industry players to ensure effective implementation of tax policies.
The Rembinar drew participation from government agencies, industry professionals, policy experts, civil society organizations, and the media, all committed to strengthening Nigeria’s tax system and ensuring greater transparency in extractive sector governance.
NEITI, OrderPaper, and industry experts reaffirmed their support for the Tax Reform Bill, recognizing it as a crucial step toward strengthening public finance management, improving tax compliance, and boosting Nigeria’s revenue collection efforts.