Tax experts have said there is a need for clear legislation, consistent regulatory enforcement and stakeholder engagement to ensure the successful implementation of the Federal Government’s Economic Stabilisation Bill.
The specialists noted that well-defined tax policies would provide clarity for businesses while balancing revenue generation and investment incentives in key sectors.
Speaking at the fourth edition of the Economic Stabilisation Bill Summit, organised by the Chartered Institute of Taxation of Nigeria (CITN), stakeholders revealed the importance of aligning tax reforms with existing frameworks under the Petroleum Industry Act (PIA), Petroleum Profits Tax Act (PPTA) and Deep Offshore Inland Basing Act (DOIBPSC) to foster economic stability.
Managing Partner at Ascension Consultancy Services, Alatoye Azeez, said the companies operating in the upstream sector must remain informed and compliant with evolving tax regulations.
He stressed that businesses should optimise deductions to minimise tax liabilities, maintain accurate financial records, and seek expert advice on tax planning strategies.
Azeez, who also serves as the Dean of the Extractive Industries Taxation Faculty at CITN, provided a broad overview of taxation in petroleum operations, noting that a major component of the Economic Stabilisation Bill is the adjustment of tax structures for upstream petroleum activities to align with the PIA 2021.
He further explained that tax audits are important in the oil and gas industry and should be encouraged to foster transparency and accountability.
Participants at the event were urged to deepen their understanding of the legislative and regulatory frameworks governing petroleum taxation under the 2024 Economic Stabilisation Bill.
Azeez advised industry players to explore the core principles of hydrocarbon tax (HT) and petroleum profits tax (PPT) to appreciate how chargeable profits are determined in the sector.
Speaking on tax compliance, Assistant Director of the Oil and Gas Department at the Federal Inland Revenue Service (FIRS), Emmanuel Okon, cautioned against aggressive tax planning and tax evasion, stating that the line between the two is often thin.
He urged companies to uphold tax integrity while complying with regulations.
Similarly, Partner at Deloitte, Olumide Esan, and Tax Manager at Shoreline Natural Limited, Oluremi Olubamowo, called on industry players to familiarise themselves with the contents of the Economic Stabilisation Bill. They stressed the need for collaboration among stakeholders to strengthen enforcement and ensure compliance with tax laws.
CITN President, Samuel Agbeluyi, reiterated the institute’s commitment to continuous learning and professional development.
He announced that CITN would launch tax training programs in March, aimed at simplifying taxation and enhancing industry knowledge.
