Omaplex 365: Nigeria 2022 Socio-economic and Technological Outlook Download PDF As with several countries across the globe, Nigeria has had to deal with the many…
Tax compliance is a labour-intensive and time-consuming process, often involving a lot of paper work and professionals, thereby driving up costs. The tax payer would ordinarily collate, prepare, and submit their returns, also calculating and deducting their allowable where applicable, while the tax authorities verify, cleanse, and validate the returns before the process is completed. This process drives up costs and needlessly consumes the time of the taxpayers and the authorities. There’s also the unending battle between taxpayers and authorities in interpreting and applying tax laws, leading to indecision and risks of audits and even litigation.
The first thing Nigeria must do is to increase the transparency of the taxation process in the informal sector by ensuring that only authorised government personnel or agents are empowered to collect taxes. This not only solves the problem of multiple taxation and the activities of non-state actors in the collection process, it also, most importantly, ensures that all funds obtained are remitted into government coffers. With this mechanism, the government can easily ensure accountability in remittances, set targets for its officials and ultimately nib any form of corruption in the bud.
The Petroleum Industry Act (The Act), 2021 (PIA) seeks to introduce far-reaching reforms in the Nigerian Oil and Gas Industry aimed at establishing good governance, best practices, and the ease of doing business by clarifying roles and responsibilities of officials and institutions, enabling frontier exploration, improving environmental compliance, and transforming the Nigerian National Petroleum Corporation (NNPC) into a commercially viable enterprise.