By Abubakar Yunusa

The Nigeria Extractive Industries Transparency Initiative (NEITI) says the 2024 tax reform bills will improve compliance across various industries including the oil, gas, and mining sectors.

Ogbonnaya Orji, NEITI’s executive secretary, spoke on Monday during a webinar, convened in collaboration with OrderPaper Nigeria, a civil society organisation (CSO).

Speaking on the topic, ‘Tax Bills and the Implications for NEITI Audits’, Orji said the dialogue was crucial as Nigeria advances comprehensive tax reforms to strengthen revenue mobilisation and ensure fiscal sustainability.

He said the discussion was necessary because the extractive sector remains the backbone of Nigeria’s economy, accounting for a substantial share of government revenue and foreign exchange (FX) earnings.

Orji, however, said persistent challenges — such as tax evasion, revenue leakages, weak enforcement, and a lack of transparency in fiscal regimes — have continued to undermine the sector’s potential to drive sustainable development.

He said the tax reform bills, currently under legislative review, represent a bold effort to modernise Nigeria’s tax system.

“NEITI had carefully examined the bill and acknowledges its potential to improve tax administration, streamline legal frameworks, and enhance compliance across various industries, including oil, gas, and mining,” he said.

The NEITI secretary said it also sent “strong” recommendations to the national assembly on how to address some areas of concerns raised.

He listed key highlights of the bill to include, consolidation of tax laws to improve clarity and compliance and taxation of digital assets and non-resident entities, aligning Nigeria with global best practices.

Others are stronger anti-tax avoidance measures, including minimum effective tax rates to curb profit shifting; improvements in VAT administration, double taxation relief, and tax incentives for priority sectors.

“While these provisions signal progress, we must also critically assess their impact on NEITI audits, revenue transparency, and sector-specific compliance — which brings us to today’s discussion,” he said.

Orji said key questions for consideration should focus on how the new tax regime would impact the transparency and accountability measures championed by NEITI.

“Are the tax administration reforms aligned with our extractive industry audit framework? How do we ensure extractive companies fully disclose their tax obligations?” he said.

“While the bill seeks to boost government revenues, are there provisions to maintain Nigeria’s competitiveness in attracting extractive sector investments?

“What safeguards should be introduced to prevent over-taxation from discouraging long-term investments?

“How do we strengthen enforcement mechanisms to combat tax evasion, illicit financial flows, and profit shifting by multinational corporations?

“What role can inter-agency collaboration play in improving compliance and closing revenue leakages.”

Orji said NEITI is committed to supporting the legislative process of the tax reform bill by providing technical inputs, data-driven insights and policy recommendations.

He added that the initiative’s support will strengthen fiscal transparency, enhance accountability, and maximise resource benefits for all Nigerians.

The NEITI secretary said the organisation recognises the importance of sustained multi-stakeholder engagement, particularly in ensuring that CSOs, the private sector, and the media remain actively involved in tracking the bill’s implementation and impact.

On his part, Oke Epia, founder of OrderPaper Nigeria, lauded NEITI and the participants for their contributions towards the legislative process.

Epia, who underscored the need for a concerted engagement, said it is not time to shy away from dialogue’ because relevant contributions were necessary for national development in view of the 2024 tax reform bill.

Also speaking, Haruna Yahaya, a panelist, maintained that the new tax regime should comply with the position of the global Extractive Industries Transparency Initiative (EITI) implementation.

By Manasseh Istifanus

Senator Sunday Marshall Katung stands out as a notable politician, driven by a genuine concern for the welfare of his constituents. With unwavering dedication, he remains closely connected to the grassroots, constantly striving to improve their lives. His impressive track record since assuming office speaks volumes about his deep commitment to his role as our senator. Through his unwavering actions and notable accomplishments, he has silenced naysayers and gained the unwavering support of the public, proving that he takes his responsibilities seriously and will not betray the trust bestowed upon him by our people.

Despite his demanding schedules, Senator SMK has never lost touch with the needs of his constituents. He recognizes the importance of being actively involved in the daily lives of our people to truly understand their struggles and concerns. His regular visits to different parts of our Senatorial District, where he strives to identify areas for improvement and make positive impact on the lives of the people he represents is truly commendable.

Recently, for two weeks in a stretch, Senator Katung dedicated his time in the village to diligently explore various sectors within our region. His goal was to identify opportunities for positive change and to enhance the overall quality of life for our people. This proactive approach is a testament to his unwavering commitment and sincere desire to see our zone and our people thrive.

Senator Katung is a man of great foresight, prioritizing long-lasting projects over temporary fixes. Of all the areas close to his heart, education holds a special significance for him. He understands the crucial role education plays in paving the way for a better tomorrow for our youth and siblings. Keeping this in mind, he wasted no time immediately he was inaugurated as our Senator and, in less than a year and a half, successfully advocated, lobbied and advanced the establishment of a Federal University of Applied Sciences in our region. Today, his vision has become a reality, setting a new record for the speed and efficiency with which it was accomplished. This is undoubtedly one of the finest achievements in our history as a region.

Senator SMK is also making several interventions in different sectors of our socio-economic life, most especially in education; with interventions in different schools within our region and the impact is already being felt within those communities.

His recent visits to the facility of the Federal University of Applied Sciences in Kachia to ensure a smooth and seamless academic take-off later in September this year further demonstrated his tireless efforts and dedication to meeting the educational needs of our people.

As we prepare for September take-off of the University, we hope to see our children and younger siblings admitted to this unique University, which will bring us immense joy and hope for a better future. In addition to this, we anticipate a brighter future for our people as hundreds of individuals will secure employment and be able to earn a decent livelihood. The economy of our region will thrive, offering endless possibilities for our people to pursue. We are grateful to God and forever indebted to Distinguished Senator Sunday Marshall Katung and all those who contributed to making this dream a reality.

Keep trusting the process…..

~ Manasseh Istifanus writes from Gora Bafai, Zangon Kataf Local Government Area of Kaduna State.
4th March, 2025.