Technical Report of Day 2

According to Francis Bacon, reading makes a full man, conference a ready man while writing, an exact man. The 2021 Annual Tax Conference of the Chartered Institute of Taxation of Nigeria (CITN), the 23rd in the series, entered the second day on Wednesday, 19 May 2021. The 14th President of the Institute, Dame Gladys Olajumoke Simplice, FCTI in her welcome address charged the participants to take advantage of the opportunities presented in this conference to expand their mental horizon in the concerted efforts to re -evaluate our path to economic recovery and growth.

The conference holding at the Umaru Musa Yar’adua Hall, Murtala Mohammed Square, Race Course, Kaduna, Kaduna State was declared open by the Executive Governor of Kaduna State, His Excellency, Mallam Nasir Ahmad El- Rufai. While delivering his remarks, the governor identified taxation as the hope of the Nation in chatting the course of economic recovery and growth.

He however charged the Institute to center it’s deliberations on how to proffer suggestions to the following key areas of challenge:

a. Identifying how to scale up the taxation of the informal sector of the economy, which he noted employs over 70 percent of the labour force in the country

b. Identifying mechanisms to enable effective taxation of the agricultural sector at the basis. He identified agriculture as the largest sectoral employer of labour in Nigeria, the taxation of which must start from the foundation and not at the stage of the processed product.

c. How to scale up the identification of tax records to enable the capturing of all adults in Nigeria. With the different identification tools currently in use ( BVN, NIN, International Passport numbers, TIN, etc.), the Institute should come up with mechanisms to speed up tax identification records to ensure the capturing of taxable adults in Nigeria into the tax net.

d. With the growing eminence of electronic transactions, the Institute should champion the evolvement of techniques for the taxation of the digital economy in Nigeria.

The conference lead paper on Taxation For Economic Recovery: A Necessity For Social Engagement And Economic Sustainability was delivered by Dr Seyi Olarenwaju, Country CFO of Mixta Africa and formerly MD and ED Finance, Vodacom Business Africa (Nigeria). Dr Seyi identified taxation as the key instrument of macroeconomic tool for economic growth and development. It provides the avenue for social engagement with the citizenry through the social contract dogma. However, the Nigerian tax system has failed to keep up the growth as a result of many changes, which include multiple taxes on the same or similar tax base e.g. CIT, EDT, VAT on income/profit; lack of clarity on taxing powers at the three tiers; incomprehensive tax administration database; corruption in the management of tax returns; poor reporting of the utilization of tax resources; complex textual composition of tax laws causing arbitrariness in interpretation; excessive focus on oil and gas; inefficient tax collection systems because of unskilled manpower and poor infrastructure; obsolete tax laws; limited information for taxpayers on tax matters and poor overall national tax policy direction. He concluded by suggesting the adoption of businessboosting policies; detailed, robust information management system for the effective administration of tax; transparent tax reporting; national infrastructure investment; civil service restructure and tax orientation among strategies for sustainable economic growth.

The first panel session focused on economic recovery and growth plan: post COVID-19 pandemic assessment and outcome. The session discussed the present condition of the Nigerian economy, the impact of the COVID-19 pandemic and fall in global oil prices on the economy. The session also discussed challenges of an oil-dependent economy and the importance of a diversified economy as well as identifying practical solutions to increase revenue generation and drive for economic growth and development. The session was chaired by Professor Godwin Emmanuel Oyedokun, FCTI, of Lead City University, Ibadan and a member of the Governing Council of the Institute.

The discussants include Ari Aisen, the International Monetary Fund (IMF) Resident Representative for Nigeria; Halima Ilya Ibrahim of the Federal Ministry of Finance, Budget and National Planning and Adetola Aibangbee, Member of the Governing Board of the Federal Inland Revenue Service Service.

Abiahu, Mary-fidelis Chidoziem,acti Director, Research and Professional Standards

Chartered Institute of Taxation of Nigeria (CITN).

The conference which commenced on Tuesday, 18 May 2021 will run to Friday, 21 May 2021.