The Chartered Institute of Taxation of Nigeria (CITN) has emphasised that the long-term success of the nation's new tax reforms hinges on three critical pillars: sustained implementation, institutional capacity building, and continuous engagement with stakeholders.
Blueprint for a Modern Tax System
In an exclusive discussion with The Guardian, CITN President, Innocent Ohagwa, detailed the ambitious objectives of the reform programme. He explained that the reforms are fundamentally designed to create a more efficient and modern revenue administration framework for Nigeria.
The core goals include harmonising the multitude of existing taxes and levies, enhancing coordination between federal, state, and local governments, and leveraging technology and data to modernise collection processes. This marks a significant shift from the previous system, which Ohagwa described as fragmented with inconsistent practices across different levels of government.
Streamlining Taxes and Empowering Local Government
A major achievement under the expanded mandate of the Joint Revenue Board has been the drastic simplification of the tax landscape. Over 45 previously fragmented state and local government taxes and levies have been consolidated into just nine clearly defined taxes.
Ohagwa confirmed that states have forwarded these streamlined taxes to their respective houses of assembly for enactment into law. He noted that several states have already passed the necessary legislation, with others in advanced stages of the legislative process.
The reform also introduces a structured framework for local government involvement through the establishment of Local Government Revenue Authorities (LGRAs). These bodies will handle assessment and collection within their jurisdictions while receiving supervisory support and capacity development from state internal revenue services to ensure accountability and uniform standards.
The Path Forward: Implementation and Collaboration
Ohagwa stressed that passing the laws is only the beginning. The real work, he asserted, lies in the diligent execution of the new framework. Sustained implementation, building the capacity of revenue institutions, and maintaining an open dialogue with all stakeholders are non-negotiable for achieving the full benefits of the reform.
As the premier professional body for taxation in Nigeria, the CITN has pledged its ongoing support to governments at all levels. This support will come in the form of capacity development programmes, professional certification, advisory services, and the promotion of global best practices in revenue administration.
The ultimate aim is to ensure the reform's objectives—greater efficiency, clarity of roles, and consistency in tax administration—are effectively realised across the entire country, fostering a more business-friendly environment and improving the nation's revenue base.
