The Chartered Institute of Taxation of Nigeria (CITN) has said it is stepping up efforts to develop tax policies that target the digital economy and prevent base erosion and profit shifting (BEPS) by multinational corporations operating in Nigeria.
The outgoing president of CITN, Mr. Samuel Agbeluyi, made this known during the 33rd annual general meeting of the institute, where he presented a comprehensive report of the institute’s activities and engagements over the past year.
Mr. Agbeluyi said the rapid expansion of digital services and cross-border online transactions had brought about new complexities in global taxation, which could no longer be ignored. He noted that while digitalisation has opened up new revenue opportunities, it also poses serious challenges for tax administrators, policymakers, and governments, especially in emerging economies like Nigeria.
“Tax systems around the world are evolving, and Nigeria is no exception. The digital economy has created fresh opportunities, but it also introduces loopholes and risks of revenue loss through profit shifting by multinational companies,” Agbeluyi stated.
He added that as companies increasingly conduct business without a physical presence, tax authorities must adopt smarter, technology-driven approaches to ensure compliance and close gaps in collection.
Giving a broader economic outlook, the CITN president explained that despite some early challenges, Nigeria’s economy is showing signs of recovery, although headwinds such as inflation, foreign exchange volatility, and infrastructure gaps continue to affect macroeconomic stability.
He referenced the impact of recent policy decisions by the Federal Government, including the removal of fuel subsidies and reforms in the forex market, which, while necessary, created short-term economic pressure for households and small businesses.
“In such a climate, boosting domestic revenue has become a necessity. Taxation is now at the centre of fiscal strategy, with the government rolling out reforms aimed at broadening the tax base, improving compliance, and reducing leakages,” he said.
Agbeluyi also spoke on monetary policy trends, noting that the Central Bank of Nigeria’s decision to retain the Monetary Policy Rate (MPR) at 27.5 per cent was indicative of the cautious stance being taken to balance inflation control with economic growth.
On the institute’s contributions, the outgoing president said CITN has continued to play a pivotal role in Nigeria’s fiscal transformation, working closely with stakeholders to ensure Nigeria’s tax system keeps pace with global developments.
According to him, the institute was actively involved in the work of the Presidential Fiscal Policy and Tax Reforms Committee. He added that CITN also collaborated with various government agencies, private sector players, and professional bodies to drive awareness around tax reforms, cross-border taxation, and digital compliance strategies.
“We have been consistent in promoting tax education and improving the capacity of tax professionals. This is in line with our mandate to support the government’s efforts to build a fair, effective and modern tax system,” he said.
Agbeluyi also acknowledged the support the institute had received from stakeholders across both the public and private sectors. He said such partnerships were crucial in enhancing Nigeria’s tax system and ensuring sustainable revenue mobilisation.
Looking ahead, he urged the incoming leadership of CITN to sustain the momentum and intensify engagement on pressing issues like e-commerce taxation, crypto asset regulation, transfer pricing, and implementation of the OECD’s global tax framework.
With Nigeria’s public debt on the rise and pressure mounting to fund development goals, experts believe digital taxation will become even more critical in the years ahead. Observers say Nigeria must continue to align its domestic laws with international best practices if it is to effectively tax global tech giants and other digital businesses earning profits from the local market.
