E-Financial
Why Nigeria Backed out OECD Tax Accord – FIRS
Nigeria has declined to endorse the Organization for Economic Cooperation and Development (OECD) Minimum Corporate Tax Agreement, according to the Federal Inland Revenue Service (FIRS), since it does not suit the country’s overall interests.
Mohammad Nami, executive chairman of FIRS, made this explanation at the Chartered Institute of Taxation of Nigeria’s recent tax conference (CITN).
Nami was responding to a comment made by Mr Aigboje Aig-Imoukhuede in his opening paper at the conference, in which he questioned the wisdom of Nigeria, along with three other countries, Kenya, Pakistan, and Sri Lanka, refusing to sign the OECD’s global minimum tax deal in response to the digital 4th industrial revolution.
In his welcome address, Adesina Adedayo, president. CITN, expressed concerns about Nigeria’s refusal to sign the 15-point Organisation for Economic Co-operation and Development Base Erosion and Profit Shifting (OECD-BEPS) Action Plan, particularly action plans 5, 6,13, and 14, which he claimed formed the implementation of the OECD-BEPS Project 4 minimum requirements.
Nigeria’s use of reciprocal jurisdiction, he said, has its own consequences in terms of disrupting the global tax system.
However, Nami stated in his response that Nigeria’s cautious approach to the adoption of the (OECD)/ G20 Inclusive Framework two-pillar solution to the taxation of the digital economy is in the country’s best interests and will ensure that Nigeria does not miss out on potential revenue from the digital economy.
Nami explained why the agreement is unfair to Nigeria and developing nations in general by stating that the country was concerned about the impact that signing the agreement would have on the country’s tax structure and tax revenue creation after reviewing the terms of the agreement.
“There are grave concerns about how the rules would exacerbate the problems in our tax system.” To tax any digital transaction or multinational enterprise (MNE), for example, the company or enterprise must have an annual global turnover of €20 billion and a global profitability of 10%. That is a cause for concern. Because the majority of MNEs operating in our country do not fit these standards, we would be unable to tax them.
“Secondly, the €20 billion global annual turnover in question does not apply to a single accounting year; rather, the enterprise must generate €20 billion in revenue and maintain a 10% profit margin on average for four consecutive years; otherwise, the enterprise will never pay tax in our country, but in the country from which it originated, or its country of residence,” he added.
Finally, he pointed out that for Nigeria to apply the law, a global corporation must have generated at least €1 million in revenue from Nigeria within a year.
Nami believes that this is an unjust situation, particularly for domestic businesses that have a minimum revenue of N25 million (about €57,000) and are subject to Nigerian corporate income tax.
He went on to say that this rule will exempt a large number of multinational corporations from paying taxes in Nigeria.
In other words, even multinational corporations that currently pay taxes in Nigeria would stop paying taxes to us as a result of this rule.
Fourth, the FIRS Executive Chairman indicated that under the terms of the Two-Pillar Solution, in the case of a dispute between Nigeria and a Multinational Enterprise, Nigeria would be subjected to an international arbitration panel rather than Nigeria’s domestic court system.
“Even when the money is directly tied to a Nigerian member of an MNE group, which is typically liable to tax in Nigeria on its worldwide income and subject to Nigerian laws, it would be subject to international arbitration rather than Nigeria’s court system and laws.” We are concerned about receiving a fair bargain as a result of this procedure.
“More importantly, a dispute resolution process involving a Multinational Enterprise before an international arbitration tribunal outside the country would result in high legal fees, travel expenditures, and other incidental costs.” Nigeria will spend more, even if the tax revenue from such cases was not enough,” he stated.
On the possibility of Nigeria losing significant revenue if it does not sign the OECD Inclusive Framework rules for the taxation of the digital economy, the FIRS Executive Chairman stated that this was not a concern because the country had already proposed four solutions to the problem of digital economy taxation.
Nigeria Deposit Insurance Corporation (NDIC) has begun the final phase of liquidation for the defunct Premier Commercial Bank, initiating the payment of liquidation dividends to verified creditors, nearly 25 years after the bank’s closure.
Premier Commercial Bank had its operating license revoked by the Central Bank of Nigeria (CBN) on December 20, 2000, following findings of financial instability and regulatory non-compliance.
Since then, the NDIC has overseen the bank’s liquidation process under a winding-up order from the Federal High Court, which designated the corporation as the official liquidator.
In a public announcement, the NDIC invited all eligible creditors to visit any of its zonal offices between June 2 and June 27, 2025, to verify and claim their entitlements.
This move marks a critical milestone in the final settlement of claims related to the bank’s collapse.
To facilitate the verification process, creditors are required to present proof of deposit or shareholding, such as a passbook, chequebook, term deposit certificate, or bank statement.
Additionally, valid identification documents must be submitted, including a driver’s license, international passport, national identity card, NIN slip/card, voter’s card, or a formal identification letter from a traditional ruler or local government chairman.
The NDIC assured the public that the ongoing settlement is part of a broader effort to bring closure to longstanding claims resulting from Premier Commercial Bank’s liquidation. The process, according to the corporation, has been designed to ensure efficient disbursement to all verified stakeholders.
Premier Commercial Bank is one of 53 deposit money banks whose licenses were revoked by the CBN between 1994 and 2018 due to various violations and signs of financial distress.
These closures were followed by legal procedures appointing the NDIC to manage asset recoveries and creditor settlements.
By initiating this final phase of payment, the NDIC is reaffirming its commitment to financial system stability and depositor protection while calling on all affected individuals and institutions to complete verification processes promptly to receive their due compensation.
Securities and Exchange Commission (SEC) has directed all public companies and Registrars to stop treating unclaimed dividends older than 12 years as “statute-barred”, especially those dating from before the enactment of the Finance Act 2020.
The directive reaffirms the provisions of Section 60 of the Finance Act, which mandates that dividends unclaimed for over six years be transferred to the Unclaimed Funds Trust Fund (UFTF), where they remain accessible to shareholders pending claims.
The Commission said that shareholders are entitled to continue to claim their dividends that are not statute-barred (that is not above 12 years) before December 31, 2020 “when the Finance Act 2020, came into effect.”
According to the SEC in a Circular, “The attention of the Securities and Exchange Commission has been drawn to the fact that paying companies and their Registrars have continued to treat unclaimed dividends of public companies that are older than 12 years as being “statute-barred” without recourse to the provisions of the Finance Act 2020.
“In response to various inquiries on the subject, the Commission hereby clarifies as follows: The import of the provisions of Section 60 of the Finance Act 2020 (December 31, 2020), is that, where dividends declared by a public company quoted on the Nigerian Exchange Limited remained unclaimed for a period of six years or more, such dividends are expected to be transferred to the Unclaimed Funds Trust Fund (UFTF) to be held in trust and managed pending when the shareholder presents a claim for such unclaimed dividends.
“Pending the setting up and operationalisation of the UFTF by the Federal Government, pursuant to its powers under Sections 3 (4) (e) and 93 of the Investments and Securities Act 2025, the Commission hereby directs public companies and their Registrars to continue to honour all requests by shareholders for the payment of unclaimed dividends as described above, with effect from December 31, 2020”.
The Commission therefore directed public companies and Registrars to effect immediate compliance with the directive and submit periodic reports on same in the manner prescribed in the Commission’s Rules and Regulations.
Federal Inland Revenue Service (FIRS) has revised its Standard Operating Procedure (SOP) as part of efforts to improve consistency, transparency, and service delivery in tax administration across the country.
According to a statement on Monday in Abuja by Mr. Collins Omokaro, Special Adviser on Communication Strategy and Advocacy to the Executive Chairman of FIRS, the revised SOP offers a unified framework for core tax processes including registration, payment, audit, and enforcement.
“This is about people, experience, and impact. It’s a step toward a tax system that supports voluntary compliance and national development,” Omokaro said.
He explained that while FIRS field offices have long operated with good intentions, inconsistent methods across different locations often created confusion for taxpayers.
The revised SOP, he said, is designed to eliminate such disparities by providing a single, clear roadmap for operations in all of the Service’s over 300 offices nationwide.
More than just a procedural manual, the new SOP is described as a statement of institutional direction, reflecting values that define the future of the Service.
Omokaro quoted Dr. Zacch Adedeji, executive chairman of FIRS, as saying that “This SOP is not just a technical document—it is a declaration of who we are becoming as a service. It reflects our commitment to transparency and service to the Nigerian people.”
The SOP update is one component of a broader reform agenda underway at FIRS, which aims to transform the agency into a fully service-oriented institution.
The changes are also aligned with the ongoing digital transformation within the agency, which is intended to harmonize human and technological systems for faster, more reliable, and taxpayer-friendly service delivery.
Internally, the SOP is expected to enhance operational efficiency and provide a foundation for improved staff training, clearer guidance, and stronger evaluation systems. Omokaro noted that every FIRS employee is expected to study, implement, and embody the procedures outlined in the new document.
“With this rollout, every FIRS staff member has a clear mandate: study it, apply it, and embody it. That’s how we’ll earn the trust of Nigerians,” he said.
The SOP reform is being introduced as part of the Service’s broader mission to reposition itself as a modern tax authority grounded in accountability, consistency, and a shared sense of national purpose.
The move comes as the FIRS continues to modernize its processes, improve tax collection efficiency, and foster a culture of voluntary compliance—all aimed at strengthening revenue mobilization to support Nigeria’s development agenda.
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