The Chartered Institute of Taxation of Nigeria (CITN) has announced intensified efforts to capture tax revenue from the digital economy and curb base erosion and profit shifting (BEPS) by multinational corporations. President and Chairman of Council of the CITN, Innocent Ohagwa, made this known during the institute’s 34th yearly general meeting held in Lagos. He highlighted the challenges posed by technological advancements and complex business models that could lead to tax revenue leakages.
Global Economic Context
Ohagwa provided an account of the institute’s performance during the period under review, noting that despite the International Monetary Fund’s (IMF) projection of 3.3 percent growth, the global outlook remains fragile. Persistent inflation risks, structural imbalances in major economies, and ongoing geopolitical uncertainties from the Ukraine/Russia war and USA/Israel/Iran skirmishes continue to weigh on the global economy. Regarding Africa, the CITN boss stated that while the African Development Bank (AfDB) projects GDP growth to rise to 4.4 percent this year, this figure remains below the seven percent annual growth needed to create sufficient employment and reduce poverty on the continent.
Nigeria's Economic Situation
Ohagwa noted that Nigeria’s economy is consolidating the gains of recent reforms. GDP growth is projected at approximately 4.2 percent, driven by services, telecommunications, fintech, and real estate. Inflation, which once galloped at over 30 percent, has moderated to the mid-teens. He commended the Federal Government’s tighter monetary policy and foreign exchange reforms. However, he pointed out persistent challenges: debt servicing consumes nearly half of government revenue, insecurity undermines productivity, and high energy costs erode business competitiveness. Inflationary pressures, exchange rate volatility, and infrastructural deficits continue to impact economic stability, while household purchasing power remains weak.
Tax Reforms and CITN's Role
In this context, Ohagwa said taxation has assumed a more strategic role within fiscal policy. The government has introduced reforms aimed at creating greater opportunities for business growth, enhancing efficiency, broadening the tax base, improving compliance, and reducing revenue leakages. He noted that the Central Bank of Nigeria’s (CBN) decision to retain the monetary policy rate at 26.5 percent, at the 305th Monetary Policy Committee (MPC) meeting, underscores the delicate balance between curbing inflation and stimulating growth. Last year, the CITN operated within a dynamic and evolving environment shaped by national priorities on tax and fiscal policy reforms, economic resilience, and regulatory transformation. Tax reforms and fiscal adjustments increased public attention on taxation matters, with businesses and individuals requiring greater guidance, interpretation, and engagement regarding emerging tax issues.
Capacity Building and Advocacy
The CITN has played a critical role in addressing that demand through various capacity-building and awareness programmes organised pre- and post-enactment of the tax reform Acts, and the institute has not relented in its efforts. On the economic side, Ohagwa added that inflationary pressures and rising operational costs also affected institutional expenditure patterns, programme delivery, and event administration. This is especially because evolving tax reforms required the CITN to assume stronger advocacy, advisory, and stakeholder-coordination roles across Nigeria. “In effect, while the broader operating environment simultaneously increased institutional responsibilities and strengthened the strategic relevance of the institute, inflation heightened the cost of delivering the institute’s mandate,” he said.
