The Chartered Institute of Taxation of Nigeria (CITN) has announced intensified efforts to capture revenue from the digital economy and curb Base Erosion and Profit Shifting (BEPS) by multinational corporations, as tax systems continue to evolve.
CITN President Highlights Challenges
President and Chairman of Council, CITN, Innocent Ohagwa, made this known during the institute's 34th yearly general meeting in Lagos. He highlighted the challenges arising from technological advancement and intricate business models, which increase the likelihood of tax revenue leakages.
Ohagwa provided a report on the institute's performance during the period under review and gave context on the operating environment. He noted that despite the International Monetary Fund (IMF) projecting global growth at 3.3 percent for 2026, the outlook remains fragile due to persistent inflation risks, structural imbalances in major economies, and ongoing geopolitical uncertainty from the Ukraine/Russia war and USA/Israel/Iran skirmishes.
Africa's Economic Outlook
Regarding Africa's economy, the CITN boss stated that while the African Development Bank (AfDB) projected GDP growth to rise to 4.4 percent in 2026, this figure remains below the seven percent yearly growth needed to create sufficient employment and reduce poverty on the continent.
Nigeria's Domestic Front
On the domestic front, Ohagwa said Nigeria's economy is consolidating the gains of recent reforms. He noted that GDP growth is projected at approximately 4.2 percent, driven by services, telecommunications, fintech, and real estate. Inflation, once galloping at over 30 percent, has moderated to the mid-teens, thanks to the Federal Government's tighter monetary policy and foreign exchange reforms.
He added that the naira, though still under pressure, has found relative stability around N1,375 to the dollar, while external reserves hover near $49.49 billion as of 15 May 2026, providing a buffer for imports.
Persistent Challenges
However, Ohagwa noted that some challenges persist. Debt servicing consumes nearly half of government revenue, insecurity undermines productivity, and high energy costs erode the competitiveness of businesses. Inflationary pressures, exchange rate volatility, and infrastructural deficits continue to impact economic stability, while household purchasing power remains weak.
In this context, the CITN chief said taxation has assumed a more strategic role within fiscal policy. The government has introduced reforms aimed at creating greater opportunities for business growth, enhancing efficiency, broadening the tax base, improving compliance, and reducing revenue leakages.
Additionally, the Central Bank of Nigeria's decision to retain the Monetary Policy Rate at 26.5 percent, as decided at the 305th Monetary Policy Committee (MPC) meeting, underscores the delicate balance between curbing inflation and stimulating growth.
CITN's Role and Achievements
Ohagwa stated that the CITN operated within a dynamic and evolving environment shaped by national priorities on tax and fiscal policy reforms, economic resilience, and regulatory transformation. Tax reforms and fiscal adjustments increased public attention on taxation matters, with businesses and individuals requiring greater guidance, interpretation, and engagement regarding emerging tax issues.
The CITN has played a critical role in addressing that demand through various capacity-building and awareness programmes organised before and after the enactment of the tax reform Acts, and it continues its efforts.
On the economic side, Ohagwa added that inflationary pressures and rising operational costs also affected institutional expenditure patterns, programme delivery, and event administration. This is especially because evolving tax reforms required CITN to assume stronger advocacy, advisory, and stakeholder-coordination roles across Nigeria.
"In effect, while the broader operating environment simultaneously increased institutional responsibilities and strengthened the strategic relevance of the institute, inflation heightened the cost of delivering the institute's mandate. Notwithstanding, the Institute indeed benefited from robust stakeholder support and collaboration within the period and is hopeful for more support in the next presidential year and beyond from stakeholders," he said.
