Nigerian President, Muhammadu Buhari has directed the Federal Inland Revenue Services (FIRS) and related government agencies to block all revenue leakages by ensuring strict compliance of tax payments by foreign companies operating in the country.
In his comments, at the First National Tax Dialogue held virtually at the Conference Hall of the State House, the President ordered all government agencies to automate operations and Increase synergy in efforts aimed at improving revenue generation in Nigeria.
Buhari said “It is not enough that our citizens and local businesses pay their fair share of taxes. Equally, foreign businesses must also not be allowed to continue to exploit our markets and economy without paying appropriate taxes. Accordingly, the FIRS has my mandate to speedily put all measures in place to fully implement programmes to stamp out Base Erosion and Profit Shifting in all their ramifications and generally automate its tax processes”.
“In line with this, I have directed all government agencies and business enterprises to grant FIRS access to their systems for seamless connection. FIRS must ensure that its deployment of technology for automation is done in line with international best practices. In particular, FIRS can borrow a leaf from other countries which have successfully automated their tax processes.’’ The President added.
The President in a statement by his special adviser on media and publicity Femi Adesina, also bsaid Nigeria will continue to work with the Inclusive Framework (on equal footing) to develop internationally acceptable rules for taxation of the digital economy, while hoping that “the Inclusive Framework would have evolved into an acceptable multilateral solution that will comprehensively address the tax challenges of the digitalised economy by the middle of 2021.
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President Buhari assured citizens that the government will continue to pursue its mandate of improving lives through investments in infrastructural projects like railways, roads, electricity, healthcare and education, in spite of dwindling revenues and the challenge of Covid-19.
In his keynote presentation, President of the African Development Bank (AfDB), Dr Akinwunmi Adesina, projected a rebound of the Nigerian economy from recession, with a 1.5 per cent growth rate in 2021, and 2 per cent growth in 2022.
Dr Adesina said taxes should be employed as instruments for promoting development by encouraging private sector companies to take up responsibilities in infrastructure, and attracting Foreign Direct Investments, warning that prolonged tax holidays could be counterproductive.
He said youths should be incentivised to grow businesses with appropriate tax regimes, adding that Africa loses about 60 billion U S dollars annually from taxes.
NIgeria’s Finance Minister Zainab Ahmed, said the government will improve its template for tax collection, especially in the face of dwindling revenues,b describing 2021 as a year of recovery for the economy.
Edited by Oloyede Oworu
