Progress made so far in reforming Nigeria's tax laws

Nigeria, a country rich in resources and potential, has long struggled with outdated and ineffective tax laws that have hindered economic growth and development. However, in a bid to address these challenges and create a more conducive environment for businesses and individuals, the government approved the formation of the National Tax Policy Implementation committee. One year after the establishment of this committee, significant progress has been made in reforming Nigeria's tax laws. Taiwo Oyedele, Partner and head of Tax Regulatory Services at PwC Nigeria and Vice Chairman of the National Tax Reform Committee, recently sat down with CNBC Africa to shed light on the advancements made in this critical area. Oyedele highlighted the importance of having a national tax policy in place, stating that it serves as the foundation for the entire tax system. The focus has been on aligning tax laws with national interests and ensuring that every step taken moves the country in the right direction. One key strategy employed by the committee is to focus on 'super quick wins' - areas where consensus among stakeholders has been achieved. These 'low hanging fruit' reforms aim to simplify tax processes, support SMEs, and protect vulnerable segments of society. While progress has been made, Oyedele noted that amending and enacting new laws in Nigeria is a complex and time-consuming process. Despite the challenges, he remains hopeful that tangible results will be seen by the end of 2018. Looking ahead, the impact of these reforms on tax revenue collection and the tax culture in Nigeria is crucial. While immediate effects may not be significant, in the long run, simplifying tax processes and supporting SMEs can lead to increased revenue generation for the government. However, Oyedele emphasized that raising awareness about these reforms among the general population is essential. Most ordinary citizens are unaware of the ongoing changes in tax laws, and their ultimate concern lies in tangible improvements in their daily lives. The success of Nigeria's tax reform efforts will be measured not just in financial terms but also in the positive impact it has on the livelihoods of the people.