NEITI Backs 2024 Tax Reform Bill, Hails Potential to Modernize Nigeria’s Tax System
The Nigeria Extractive Industries Transparency Initiative (NEITI) has expressed strong support for the 2024 Tax Reform Bill currently before the National Assembly, citing its potential to modernize Nigeria’s tax system. NEITI’s endorsement was formalized in a memo signed by its Executive Secretary, Dr. Orji Ogbonnaya Orji, and directed to the National Assembly leadership and the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms.
According to NEITI’s Acting Director of Communications & Stakeholders Management, Obiageli Onuorah, the agency believes that the proposed legislation can streamline Nigeria’s tax administration and broaden its base, aligning it with global best practices. After a thorough review of the draft bill, NEITI noted that the bill’s provisions are based on extensive research and consultation, with innovative elements to tackle current issues in Nigeria’s tax system.
Key highlights of the bill, according to NEITI, include the consolidation of legal frameworks, taxation of digital assets, better management of resident and non-resident taxation, and measures to curb tax evasion. The bill also emphasizes fiscal transparency and efficiency, which NEITI believes will enhance revenue generation, improve household livelihoods, stimulate job creation, and offer greater economic opportunities.
While fully supporting the bill’s objectives, NEITI also pointed out areas that require improvement, particularly in relation to the extractive industries, which are central to its mandate. The agency recommended adjustments to address gaps in the bill’s provisions to ensure its successful implementation in this sector.
NEITI stressed the importance of managing the transition process carefully and launching robust public awareness campaigns to avoid administrative confusion. Despite these concerns, the agency commended the bill’s intention to unify Nigeria’s tax administration by repealing outdated Acts and consolidating them into a more efficient and modern framework.
