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.
Nigerian insurance industry has recorded a gross written premium of N1.562 trillion in the 2024 financial year. Mr Kunle Ahmed, Chairman, Nigerian Insurers Association, disclosed this during the 54th Annual General Meeting of the Nigerian Insurers Association (NIA) in Lagos.
Ahmed said that this represented a 56 per cent increase over the N1.003 trillion generated in 2023.
According to him, the industry’s total assets rose to N3.9 trillion, a 46.1 per cent increase from N2.67 trillion in 2023.
He said: “The Nigerian insurance industry in 2024 experienced notable developments, shaped by regulatory changes, economic conditions, and evolving market dynamics. “Available data indicated robust growth in gross premiums.
The industry reported a gross written premium of N1.562 trillion, a 56 per cent increase over the N1.003 trillion recorded in 2023. “Non-life business accounted for N1.1 trillion, while life business generated N470 billion.
“The industry’s total assets expanded significantly to N3.9 trillion, a 46.1 per cent rise from N2.67 trillion in 2023. “Market capitalisation also grew substantially, reaching N1.2 trillion, a 41 per cent increase from N850 billion in 2022.”
Ahmed further disclosed that the net claims paid by the industry stood at N622 billion, with the non-life segment accounting for N437 billion and the life segment for N185 billion.
He said within the non-life sector, fire, oil and gas insurance lines were key drivers of revenue growth, with all non-life products demonstrating strong quarter-on-quarter increases.
Ahead of the Africa Social Impact Summit (ASIS) 2025, scheduled for July 10 and 11 in Lagos, co-conveners Sterling One Foundation and the United Nations in Nigeria held a high-level press briefing at the United Nations House in Abuja.
L–R: Mohamed Malick Fall, Assistant Secretary-General and United Nations Resident and Humanitarian Coordinator in Nigeria; Olapeju Ibekwe, CEO, Sterling One Foundation; and Abubakar Sulieman, MD/CEO, Sterling Bank, at the recently held Africa Social Impact Summit 2025 World Press Conference at the United Nations House, Abuja.
The event brought together development partners, policymakers, and the media to outline expectations for the upcoming summit and reflect on Africa’s role in defining local responses to global challenges.
Since its launch in 2022, ASIS has grown into a key platform for regional development collaboration. From eight founding partners, the summit now brings together over 40 institutions working across climate, healthcare, education, finance, governance, and digital inclusion. This expansion points to a growing shift: African institutions are pushing to set the agenda, not wait to be handed one.
The 2025 summit, themed “Scaling Action for the SDGs: Bold Solutions for Climate Resilience and Policy Innovation,”will focus on strengthening sub-national development, rethinking finance flows, and tackling structural inequalities through long-term investment and reform.
Speaking at the press briefing, Mohamed M. Malick Fall, Assistant Secretary-General and United Nations Resident and Humanitarian Coordinator in Nigeria, reinforced the urgency of this year’s convening.
“The climate crisis is eroding decades of development across Africa, displacing communities, disrupting education and health systems, and undermining economic stability. But lasting solutions must come from those living the impact daily.
“As co-conveners of the summit, and with this year’s theme Scaling Action: Bold Solutions for Climate Resilience and Policy Innovation, ASIS offers a platform for African institutions to lead and for global partners to respond with investment, policy reform, and serious commitment.”
In a presentation on the summit’s evolving impact, Olapeju Ibekwe, CEO, Sterling One Foundation, reflected on the summit’s trajectory:
“ASIS has never been about convening for its own sake. Each summit marks a deliberate step to mobilize capital, shift policy, and advance African-led solutions. Already, we have seen over 100 million dollars unlocked through coalition efforts.
“That scale is not accidental. It is the product of systems thinking, partnership, and a commitment to putting Africa’s priorities at the center of global development conversations.”
In his remarks, Abubakar Suleiman, MD/CEO, Sterling Bank, emphasized the private sector’s enduring role in the ASIS journey: “Sterling Bank has been a strategic partner to ASIS from the very beginning.
“As global development funding becomes more constrained, it is increasingly clear that the private sector must help drive scalable solutions.
“Our engagement with ASIS reflects a belief that impact is not a side effort but core to building resilient economies and inclusive growth.”
Other partners in the room echoed the need for bold, cross-sector investment in areas such as health systems, youth employment, education access, and digital infrastructure.
ASIS boasts a coalition of over 40 institutions that includes Afreximbank, Coca-Cola, United Nations Global Compact Network Nigeria, Sterling Bank, and other theme and technical partners, with Lagos State as the host city.
Interested participants are encouraged to register at theimpactsummit.org
Flutterwave, Africa’s leading payments technology company, has been named in the TIME100 Most Influential Companies List of 2025, marking its second appearance on the prestigious global ranking.
Previously honoured in 2021, Flutterwave joins industry giants such as Amazon, Netflix, and OpenAI in the TITANS category of the fifth-annual list, which recognizes companies driving significant global impact.
The selection process, led by TIME editors, evaluated nominees based on innovation, ambition, impact, and success, highlighting Flutterwave’s transformative role in the fintech sector.
Founded in 2016, Flutterwave has grown into a powerhouse facilitating seamless payments across Africa and beyond, empowering businesses and individuals in the digital economy.
Its solutions span critical sectors such as cross-border remittances, e-commerce, travel, payroll, and hospitality.
The company’s 2021 TIME100 recognition followed its impactful campaign to help businesses pivot online during the COVID-19 pandemic.
This year’s inclusion underscores Flutterwave’s sustained influence, with its technology now reaching over 34 African countries and expanding into new markets such as Bahrain, Turkey, and Saudi Arabia, supporting a leading global ride-hailing company’s operations.
Flutterwave’s flagship remittance product, SendApp by Flutterwave, has gained significant traction in the US, UK, and EU, offering faster and more affordable money transfers for the African diaspora.
In 2024, the company secured 20 additional licenses in the US, bringing its total to 34 and achieving near-complete coverage through strategic partnerships.
Flutterwave’s focus on profitability and market expansion, coupled with a strengthened executive team, has fuelled its growth, with nearly half of its customers receiving payments in new markets last year.
Olugbenga Agboola, founder and CEO, Flutterwave, expressed pride in the recognition, stating, “Being recognized by TIME once again is a true honour. It’s a testament to our team’s incredible work. We’re shaping Africa’s financial future and connecting the continent to the world.”
The accolade follows other recent honours, including topping Fast Company’s 2024 Most Innovative Companies list for Europe, the Middle East, and Africa, and earning a second consecutive ranking in the FXC Top 100 Cross-Border Payment Companies.
The TIME100 listing solidifies Flutterwave’s position as a global fintech leader, bridging Africa to the world through innovative payment solutions.
As the company continues to expand its reach and refine its growth strategy, its influence in transforming the financial landscape remains undeniable, setting a benchmark for innovation and connectivity in the digital economy.
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