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
To support innovative solutions that enhance financial accessibility and security in the digital asset ecosystem, Tether has made a strategic investment in a financial technology (fintech) company specializing in self-custody crypto wallets and digital payments, Fizen Limited.
This transaction will allow Fizen to integrate its innovative technology with Tether’s leadership in the stablecoin industry.
The objective is to accelerate digital asset utilization while upholding the utmost security standards. This will further solidify Tether’s role in advancing blockchain-based finance and its commitment to global financial inclusion.
According to the chief executive of Tether, Mr Paolo Ardoino, this investment in Fizen “underscores our commitment to expanding global access to efficient and reliable digital financial solutions that promote the informed responsible use of digital assets in everyday life.”
“At Tether, we recognize the crucial role of self-custodial payment infrastructure in driving real-world use cases.
“Fizen’s innovative model helps to bridge the gap between self-custody and digital payments, empowering users with greater financial independence while reinforcing our leadership as the most widely used stablecoin globally, advancing inclusive access to the financial system,” Mr Ardoino added.
Also, the chief executive of Fizen, Leo Vu, said, “Stablecoins like USD₮ will undoubtedly drive crypto payments and financial inclusion worldwide.
“The technology infrastructure is already in place, but we lack consumer-friendly applications with intuitive UI/UX to accelerate mass integration.
“Fizen is solving this by making crypto payments an intuitive part of daily transactions, allowing users to pay seamlessly without even realizing they are using blockchain technology.”
Fizen offers advanced payment technologies that facilitate seamless stablecoin transactions, making digital assets more accessible for consumers and businesses. It is one of the crypto companies delivering real value to consumers and businesses, bringing practical crypto use cases to life.
The World Bank’s Global Findex Report reveals that millions of individuals worldwide remain unbanked. People in this category consistently cite distance to the nearest financial institution and a lack of proper documentation requirements as the primary reasons they could not access traditional banking services.
This investment will enable Fizen to enhance its blockchain capabilities, facilitating the seamless integration of stablecoins across multiple blockchain ecosystems. It will also provide users access to a more efficient and user-friendly solution to store, transfer, and transact using stablecoins, eliminating restricted access or complicated documentation.
However, while stablecoins offer a compelling alternative for those excluded from traditional financial systems, their practical use in everyday commerce still faces hurdles despite clear advantages, such as lower fees, enhanced security, and near-instant transactions.
Merchant usage remains a key challenge. Through this investment, Fizen aims to bridge this gap by enabling users to pay seamlessly with stablecoins.
At the same time, merchants receive instant fiat settlements through known payment methods like QR codes and card readers. This eliminates the need for additional infrastructure, making digital asset payments more accessible and efficient for businesses worldwide.
Market projections for 2024 state that QR code payments are expected to surpass $3 trillion, with 2.2 billion users by 2025, driven by increasing smartphone penetration and the rising demand for frictionless, secure, and convenient digital transactions.
With this strategy and strong technological and business development foundations, the collaboration between Fizen and Tether looks to accelerate the widespread use of crypto payments at scale to usher in an era of seamless digital transactions.
By Aduragbemi Omiyale
Dangote Industries Limited (DIL) has been commended for its contribution to the growth of Nigeria’s economy and general Arica’s development.
This applause came from the Enugu Chamber of Commerce, Industries, Mines, and Agriculture (ECCIMA) during the Dangote Group Special Day at the 2025 Enugu International Trade Fair.
The Deputy President of ECCIMA, Mr Eric Chime, who was at the event, said the conglomerate, through its various investments, has contributed to the growth and development of the domestic economy.
“We are highly delighted to welcome Dangote Plc once again to their special day at the ongoing trade fair. Their continued presence and commitment have been instrumental to the success of this annual gathering.
“Dangote’s contribution to the Nigerian economy is enormous spanning virtually every sector, from cement and food production to their recent game-changing entry into the oil and gas sector through the Dangote Refinery,” he stated.
He emphasized that the impact of the refinery, especially in regulating petroleum product prices, deserves national recognition and support.
“We call on the Federal Government to continue to support Dangote Group in its efforts to put smiles on the faces of Nigerians,” he urged.
Mr Chime further praised the president of DIL, Mr Aliko Dangote, for his visionary leadership and relentless drive for innovation, noting that the Dangote business empire represents a perfect example of what entrepreneurial excellence can achieve through research, resilience, and dedication.
In his remarks, the Deputy Regional Director for Southeast at Dangote Cement Plc, Mr Ayirioritse Okerentie, expressed gratitude to ECCIMA for providing a viable platform to engage stakeholders and show case Dangote Group’s contributions to Nigeria’s economic development. He said that the theme of the Fair, “Developing Nigeria’s Industrial Sector/SMEs for Economic Advancement & Global Recognition” speaks directly to the core mission of Dangote Group.
“As Africa’s largest indigenous manufacturing conglomerate, we are focused on Production, Prosperity, Power, and Pride. We believe the industrial sector, and by extension SMEs, can play a transformative role in job creation, import substitution, and overall economic advancement.
“The industrial/manufacturing sector has the capacity to impact significantly on the economy especially in the creation of jobs, provision of goods, reduction in imports of finished products and adding of value to our raw materials. It is generally accepted that a nation’s economic wellbeing is largely dependent on the industrial/manufacturing sector,” Mr Okerentie said.
“The industrial/manufacturing sector is labour intensive, could create millions of both direct and indirect employments for people of diverse skills such as administrators, accountants, engineers, technicians, marketing & sales among others.
“It can also create indirect employment for supply chain actors in other sectors of the economy such as raw materials suppliers, logistics and transportation, farmers, and miners,” he added.
By Dipo Olowookere
On Friday, April 18, 2025, all roads will lead to the headquarters of the Love of God in Christ (LOGIC) Church in the Lekki area of Lagos State for an uplifting evening dedicated to expressing the message of the death, burial and resurrection of Jesus Christ in music.
The day, which is Good Friday, has been set aside to celebrate the death, burial and resurrection of Jesus Christ, which is the cornerstone of Christian faith.
Christian faithful from across the global will gather for the hybrid programme tagged Jesus + Nothing Worship, a platform that provides worshippers an opportunity to connect with the essence of the Gospel in worship.
Soul-lifting singers expected to minister on that day include Neon Adejo, Greatman Takit, Victor Thompson, Timi Dakolo, Samuel Giveson (SMJ), Noble G, Steve Hills, and Lily Perez.
Others are Joxie, Anderson Qozan, Pastor Victor Paul, EmekaSongz, Flo, Dorcas Moore, Magpsalms, Mera Owili, Gerald Bishung, Phebe Lion, and the vibrant Evolution Children’s Choir.
The Lead Pastor and Apostolic Head of the LOGIC Church, Apostle Flourish Peters, while commenting ahead of the event, said, “As a Christocentric faith community, this event is a great way to celebrate the gift of Christ, who laid down his life for our redemption. Good Friday is a great time to have a worship celebration like this.”
“Nothing speaks to the culture of a people like the music they listen to. Jesus + Nothing Worship will contribute to shaping and mainstreaming a culture of christocentric worship, where the Gospel of Christ’s death, burial and resurrection is platformed through worship,” he added.
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