General
Why Nigeria Rejected OECD Minimum Corporate Tax Agreement—FIRS
By Modupe Gbadeyanka
The Executive Chairman of the Federal Inland Revenue Service (FIRS), Mr Muhammad Nami, on Monday explained why Nigeria did not endorse the Organization for Economic Cooperation and Development (OECD) Minimum Corporate Tax Agreement.
In a statement issued by his Special Assistant on Media and Communication, Johannes Oluwatobi Wojuola, the tax agency boss stated that signing the deal will not be in the interest of the nation.
The OECD Minimum Corporate Tax Agreement was designed to allow multinational enterprises (MNEs) to have a fair payment of taxes in different countries.
But Mr Nami said if Nigeria endorses it, it will lose out on potential revenue from the digital economy as the agreement is unfair to the nation and the developing countries in general.
“There are serious concerns on how the rules would compound the issues in our tax system. For instance, to be able to tax any digital sale or any multinational enterprise (MNEs), that company or enterprise must have an annual global turnover of €20 billion and global profitability of 10 per cent. That is a concern. This is because most MNEs that operate in our country do not meet such criteria and we would not be able to tax them,” he said.
“Secondly, the €20 billion global annual turnover in question is not just for one accounting year, but it is that the enterprise must make €20 billion revenue and 10 per cent profitability on average for four consecutive years, otherwise that enterprise will never pay tax in our country, but in the country where the enterprise comes from, or its country of residence,” he was further quoted as saying in the statement.
The FIRS head noted that for Nigeria to subject a Multinational Enterprise to tax under the rule, the entity must have generated at least €1 million turnover from Nigeria within a year, stressing that this is an unfair position, especially to domestic companies which, with a minimum of above N25 million (that is about €57,000) turnover, are subject to companies income tax in Nigeria.
He added that this rule will take off so many multinational enterprises from the scope of those that are currently paying taxes to Nigeria. In other words, even the MNEs that are currently paying taxes in Nigeria would cease to pay taxes to us because of this rule.
On the issue of dispute resolutions under the Two-Pillar Solution, the FIRS Executive Chairman explained that the rules were such that in the event of a dispute between Nigeria and a Multinational Enterprise, Nigeria would be subject to an international arbitration panel as against Nigeria’s own justice system.
“It would be subject to international arbitration and not Nigeria’s judicial system and laws—even where the income is directly related to a Nigerian member of an MNE group, which is ordinarily subject to tax in Nigeria on its worldwide income and subject to the laws of Nigeria.
“We are concerned about getting a fair deal from such a process. More so, such a dispute resolution process with a Multinational Enterprise, in an international arbitration panel outside the country, would lead to heavy expenses on legal services, travelling and other incidental costs. Nigeria would spend more; even beyond the tax yield from such cases,” he said.
On the issue of Nigeria losing significant revenue if it fails to sign in to the OECD Inclusive Framework rules for the taxation of the digital economy, Mr Nami noted that this was not a problem as the country had already put forward four ongoing solutions to the challenge of taxation of the digital economy.
“One, we have made it a point of practice to annually amend our tax laws to reflect the current global realities, it was courtesy of these reviews that we developed the Significant Economic Presence (SEP) rule, through the Finance Act of 2019 and 2020. The SEP rules set a threshold for multinational enterprises, without a physical presence in Nigeria, for registration and payment of taxes to the country.
“Two, we have deployed technology in order for us to bring digital transactions to the tax net. Coupled with the Significant Economic Presence rule, we have started seeing the impact of the technology we have deployed; companies like Twitter, Facebook, Netflix, and LinkedIn, among others who have no physical presence in Nigeria and that were hitherto not paying taxes, have now registered for tax purposes and are paying taxes accordingly. A positive to this is that we surpassed our target in the year 2021, despite the challenge posed to the global economy, including our own economy, by the Covid-19 pandemic.
“The third initiative is the Data-4-Tax Initiative, a blockchain technology which FIRS is jointly developing with the Internal Revenue Service of the 36 states and that of the FCT, under the auspices of the Joint Tax Board. With this project, we are confident that we are going to have a seamless view and access to all economic activities of individuals and corporate bodies in Nigeria going forward, including money spent on digital commerce.
“The fourth is that we have set up a specialised office, the Non-Resident Persons Tax Office, to manage the taxation of non-resident persons and cross-border transactions, including all tax treaty operational issues and the income derived from Nigeria by non-resident individuals and companies,” he disclosed.
By Modupe Gbadeyanka
The successful closing of about $1.126 billion in financing for the execution of Phase 1, Section 2 of the Lagos–Calabar Coastal Highway has been welcomed by President Bola Tinubu.
A statement issued on Friday by the Special Adviser to the President on Information and Strategy, Mr Bayo Onanuga, disclosed that the funding package was secured by the Federal Ministry of Finance.
Mr Tinubu described this as a landmark because it marks a significant milestone in the delivery of Africa’s most ambitious and transformative infrastructure projects.
He praised the Ministries of Finance and Works and the Debt Management Office (DMO) for working together on the transaction, adding that the federal government will continue to explore creative financing to fund critical projects across the country.
“This is a major achievement, and closing this transaction means the Lagos-Calabar Coastal Highway will continue unimpeded. Our administration will continue to explore available funding opportunities to execute critical economic and priority infrastructural projects across the country,” the President was quoted as saying in the statement.
Phase 1, Section 2 covers approximately 55.7 kilometres, connecting Eleko in Lekki to Ode-Omi, key economic corridors and significantly enhancing national trade efficiency and logistics connectivity.
The successful financing follows the earlier closing of the $747 million financing for Phase 1, Section 1, and demonstrates the scalability and bankability of the Lagos–Calabar Coastal Highway project.
The financing was fully underwritten by First Abu Dhabi Bank (FAB) and Afreximbank, with partial risk mitigation support provided by the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), marking ICIEC’s largest transaction since the country’s institutional and regulatory reforms. The structure reflects growing confidence in Nigeria’s reformed investment climate and its capacity to deliver infrastructure.
SkyKapital acted as Lead Financial Advisor, coordinating structuring, lender engagement, and execution. Environmental and Social advisory services were provided by Earth Active (UK), ensuring complete alignment with the IFC Performance Standards, the Equator Principles, and international ESG best practices. Hogan Lovells, as International Counsel, and Templars, as Nigerian Legal Counsel, led the legal advisory services.
Describing the transaction as a “defining moment in Nigeria’s infrastructure journey,” the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, said the fund will be deployed responsibly and judiciously to deliver on the project within timelines.
“The signing on December 19, 2025, of $1.126 billion financing for Phase one — section two of the Lagos-Calabar Coastal road marks a defining moment in Nigeria’s infrastructure journey, following the successful closing of the $747 million financing for Phase one section one on July 9, 2025.
“Collectively, these landmark transactions firmly establish the Lagos-Calabar Coastal Highway as one of the defining flagship projects of President Bola Tinubu’s Renewed Hope agenda, embodying the administration’s commitment to bold, transformational infrastructure.
“This financing is particularly notable as it represents, for the first time, a truly underwritten transaction of this magnitude for a Nigerian road infrastructure project. The facility was fully underwritten by First Abu Dhabi Bank ($626 million) and Afreximbank ($500 million), with partial coverage provided by ICIEC, making it the largest ICIEC-supported transaction since the institution’s creation,” Mr Edun said.
Construction is being executed by Hitech Construction Company Limited, whose rapid on-site progress and early opening of key road sections have earned commendation from lenders for engineering excellence, operational discipline, and execution speed.
In line with the federal government’s commitment to transparency and fiscal discipline, a comprehensive Value-for-Money (VfM) assessment was conducted by the Federal Ministry of Works in coordination with SkyKapital, and the assessment was independently reviewed and confirmed by GIBB.
The successful close of Phase 1, Section 2, represents a clear step-change in market confidence. It demonstrates Nigeria’s ability to move decisively from vision to execution and from reform to delivery.
By Adedapo Adesanya
The Minister of State for Petroleum Resources (Gas), Mr Ekperikpe Ekpo, has commended the Nigerian National Petroleum Company (NNPC) Limited and its partners for the rapid pace and completion of the mainline welding and associated works of the Ajaokuta–Kaduna–Kano (AKK) gas pipeline ahead of schedule.
The Minister made the remark during a recent inspection of Kilometre Zero of the landmark pipeline project, accompanied by the chief executive officer of the Nigerian state oil company, Mr Bashir Bayo Ojulari, Executive Vice President (Gas, Power, and New Energy) Mr Olalekan Ogunleye, and the managing director of Ajaokuta Steel Company Limited, Mr Nasir Abdulsalam.
“Completing the AKK Mainline ahead of schedule demonstrates the resilience, professionalism, and commitment of the project team,” Mr Ekpo said, describing the milestone as a clear reflection of the Federal Government’s renewed focus on energy infrastructure under President Bola Tinubu’s Renewed Hope Agenda.
The Minister noted that the AKK Gas Pipeline is a strategic national infrastructure poised to drive economic growth across Northern States by supplying natural gas for power generation, supporting gas-based industries, and advancing Compressed Natural Gas (CNG) initiatives.
“This project will enhance industrialisation, create jobs, and strengthen energy security, ushering in a new era of economic opportunities for Nigerians,” he added.
Mr Ekpo concluded by urging all stakeholders to maintain momentum, noting that the AKK Pipeline’s operationalisation will catalyze industrialisation, employment, and inclusive economic growth, aligning with the Federal Government’s broader strategic vision.
Speaking at the site, Mr Ojulari linked the project to tangible national development, highlighting Nigeria’s industrial heritage while projecting a resurgence driven by gas as a transition fuel.
“The AKK Pipeline reflects our commitment to timely project delivery and its strategic importance to national industrialisation and economic security,” he stated.
The inspection tour, according to him, further reinforced the Federal Government and NNPCL’s pledge to ensure the AKK Pipeline’s timely completion, which remains critical to expanding energy access, boosting industrial growth, and supporting shared prosperity across the country.
The Minister and the NNPC management team commended the project workforce for their dedication, emphasizing the role of discipline, collaboration, and technical excellence in achieving the early completion of this landmark project.
The AKK Gas Pipeline, spanning over 614 kilometers, is designed to deliver natural gas to power plants, industries, and CNG facilities, providing a major boost to Nigeria’s energy infrastructure and positioning the country as a regional energy hub.
By Adedapo Adesanya
Nigeria’s Ministry of Foreign Affairs has confirmed that the latest United States airstrikes on Islamic State West African Province (ISWAP) targets in northwest Nigeria were conducted at the request of the Nigerian government.
According to reports, the US struck at ISWAP targets in Jabo, Sokoto State, on Christmas night.
The ministry described the operation as a product of established counterterrorism cooperation between both countries.
In a press statement issued on Friday, the Ministry said the strikes were “undertaken following formal engagement and with the full knowledge and coordination of the Government of the Federal Republic of Nigeria.”
“The Government of Nigeria wishes to clarify that the airstrikes conducted by the United States against Islamic State elements in parts of northwest Nigeria were carried out at the request of Nigerian authorities and in line with existing bilateral security cooperation frameworks,” the statement said.
The Ministry stressed that Nigeria “remains firmly in control of all counterterrorism operations within its sovereign territory,” adding that international partners only provide support “where such assistance aligns with Nigeria’s national security objectives.”
According to the statement, the strikes form part of Nigeria’s broader strategy to “degrade terrorist capabilities, disrupt logistics networks, and protect civilian populations from violent extremist threats.”
The Foreign Ministry further emphasised that the federal government “will continue to work with trusted international partners to confront terrorism, banditry, and transnational criminal networks that threaten national and regional stability.”
Reacting to concerns around sovereignty, the Ministry said:
“At no time was Nigeria’s sovereignty compromised. All actions were conducted with due respect for Nigeria’s laws, institutions, and command structures.”
The statement also cautioned against mischaracterising Nigeria’s security challenges, noting that extremist violence “has affected communities across religious and ethnic lines and should not be framed in sectarian terms.”
Nigeria reaffirmed its commitment to a multi-layered response combining military operations, intelligence sharing, community engagement, and socio-economic interventions, adding that counterterrorism efforts remain focused on protecting lives and restoring stability.
The US Africa Command (AFRICOM) said the strikes were carried out in Sokoto State and that multiple militants were killed.
US President Donald Trump described the strikes as “powerful and deadly,” saying they were directed at Islamic State militants responsible for violent attacks on Christians in Nigeria.
The Nigerian government has clearly denied that only Christians are affected by the killings, saying the terror spread across all faiths.
Meanwhile, US Defence Secretary Pete Hegseth has warned that “more to come” as part of sustained efforts against extremist groups.
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