The Chartered Institute of Taxation of Nigeria (CITN) has underscored the importance of establishing a robust tax system in order to attract foreign direct investment into the country. This stance was expressed by Mr. Abiodun Oke, the Chairman of the Ikeja District Society of CITN, during his investiture ceremony in Lagos recently.
“We desire to create an environment that is conducive for investors to operate and bring their capital into the country,” Oke stated. “Recent discussions have centred around foreign direct investment, but this will not materialise if we do not have a standardised and efficient tax system in place.”
Oke advised that if the Nigerian tax laws are perceived as archaic or outdated, there is a pressing need to review and update them. “We must consider the existing laws because they dictate the rules of engagement. If these laws are obsolete and no longer aligned with current realities, we need to find ways to revise them and bring them up to par with global best practices,” he emphasised.
Expressing optimism, Oke stated that the inclusion of tax professionals in key decision-making positions would help address the long-standing issue of multiple taxation. “Multiple taxation has been a persistent challenge, but now our professionals in the tax domain have been tasked with streamlining the process, and I am confident that positive changes will emerge in the near future,” he noted.
Oke further highlighted the need for digitization in the tax collection process, noting that many Nigerians do not pay taxes due to the lack of automated systems. “People don’t pay taxes here in Nigeria, particularly small businesses. A businessman can generate billions of naira in revenue annually and only pay personal income tax, perhaps because the enterprise is not structured as a limited company. However, if such transactions are captured digitally, these individuals can be effectively monitored. The era of digital technology is what we need to leverage,” Oke affirmed.
He added that his administration would prioritise the welfare of members and foster stronger relationships within the institute. “We have to focus on the well-being of our members and explore ways to establish seamless communication channels,” he stated, emphasising the need for an e-platform to facilitate engagement with members, especially those who have dedicated their careers to the district and the institute.
Meanwhile, Mr. Samuel Agbeluyi, the President of CITN and a member of the Tax Reforms Committee, revealed that the committee is working towards reducing the number of taxes payable in Nigeria from over 60 to a maximum of 10. “They are taking a step-by-step approach, and from what we are observing, instead of the 62 different taxes we currently pay in Nigeria, we are looking at reducing them to a maximum of 10,” he declared.