Tax professionals have emphasised that the success of the Federal Government’s economic stabilisation agenda hinges on clear legislation, consistent regulatory enforcement, and meaningful stakeholder collaboration.
They highlighted these points during the fourth virtual edition of the Economic Stabilisation Bill forum, organised by the Chartered Institute of Taxation of Nigeria.
Experts explained that the proposed tax reforms, when effectively implemented, could strengthen Nigeria’s revenue base while maintaining a favorable investment climate.
The reforms are designed to align with existing tax frameworks such as the Petroleum Industry Act, Petroleum Profits Tax Act, and Deep Offshore and Inland Basin Production Sharing Contracts.
According to them, these structures aim to create a balance between government revenue generation and incentives for petroleum sector investors.
Speaking at the event, the Managing Partner of Ascension Consultancy Services, Alatoye Azeez, advised upstream petroleum companies to remain compliant with tax laws and strategically optimise deductions to reduce liabilities.
He underscored the importance of accurate financial records and urged businesses to seek expert guidance in tax planning to avoid unnecessary financial exposure.
Meanwhile, Azeez, who also serves as the Dean of the Extractive Industries Taxation Faculty at CITN, analysed the taxation of petroleum income and noted that a core aspect of the 2024 Economic Stabilisation Bill is the restructuring of tax regimes for upstream oil operations in line with the PIA 2021.
He further emphasised the role of tax audits in ensuring transparency and accountability within the oil and gas sector. He encouraged participants at the forum “to deepen their knowledge of legislative and regulatory frameworks governing petroleum taxation.”
Azeez particularly urged industry players to “familiarize themselves with key aspects of the hydrocarbon tax and petroleum profits tax to fully grasp how chargeable profits are assessed in the sector.”
On his part, the Assistant Director of Oil and Gas Department at the Federal Inland Revenue Service, Emmanuel Okon, cautioned against aggressive tax planning and tax evasion, warning that the distinction between the two is often blurred.
He stressed the need for stringent oversight to curb tax avoidance schemes that undermine government revenue.
In a panel discussion, the Partner at Deloitte, Olumide Esan, and the Tax Manager at Shoreline Natural Limited, Oluremi Olubamowo, echoed the need for industry operators to continuously educate themselves on the evolving tax landscape.
They urged stakeholders to actively support compliance measures to ensure a more transparent and efficient tax system.
Earlier in his remarks, CITN President Samuel Agbeluyi reiterated the institute’s commitment to professional development.
Agbeluyi announced that CITN would launch specialised training sessions in March to simplify tax processes and equip professionals with essential knowledge to navigate complex tax regulations effectively.
The event served as a critical platform for tax professionals, government officials, and industry players to deliberate on policies that could enhance Nigeria’s economic stability.
Furthermore, the experts acknowledged that consistent regulatory enforcement and a collaborative approach among stakeholders are key to sustaining economic reforms and boosting investor confidence.
