Nigeria Could Gain Additional $2.5bn Annually From Multinationals Under Proposed UN Tax Framework
Nigeria could potentially generate an additional $2.5 billion in corporate tax revenue annually from multinational companies if a proposed United Nations tax framework is adopted and effectively implemented.
The proposed approach is aimed at ensuring that multinational corporations pay a fairer share of taxes in the countries where they conduct business and generate profits.
For Nigeria, the framework could provide a significant boost to government revenue by allowing the country to capture more tax from large multinational companies operating within its economy.
The additional revenue could strengthen the government’s fiscal position and provide more resources for funding infrastructure, public services and other development priorities.
The proposal comes amid growing international efforts to reform the global tax system and address concerns over multinational companies shifting profits to jurisdictions with lower tax rates.
Nigeria, like many developing economies, has argued that the current international tax structure can limit the amount of revenue countries receive from multinational businesses despite their significant economic activities within those markets.
If implemented, the proposed UN approach could therefore give Nigeria greater taxing rights over multinational enterprises and potentially increase annual corporate tax receipts by about $2.5 billion.
The proposal is expected to form part of broader discussions on international tax cooperation, with developing countries pushing for reforms that would give them a greater role in determining global tax rules and enable them to mobilise more domestic revenue.
