NCC regional stakeholders’ workshop sheds light on multiple taxation challenges

The Executive Commissioner, Stakeholder Management of the Nigeria Communication Commission (NCC), Adeleke Adewolu, has decried the adverse impact of multiple taxation on the country’s economic development.

Telescope.ng reports that Adewolu made this known in a recent regional stakeholders’ workshop on multiple taxation and regulations, key figures in Nigeria’s financial and regulatory landscape held in Ibadan, the capital of Oyo state.

He said that Nigeria, often regarded as Africa’s most populous nation and the largest economy on the continent, holds significant potential for robust economic growth that can have far-reaching benefits across West Africa.

The commissioner, however, said that this potential has been stifled by the burden of multiple taxation, often referred to as ‘nuisance taxes’ by the World Bank.

Adewolu emphasized that taxation when appropriately designed and administered, serves as a vital tool for economic development. It provides a consistent and sustainable source of funding for critical social programmes and public investments while enabling the equitable distribution of wealth and resources.

He said that the challenge lies in the prevalence of multiple taxation, which has become a major obstacle to economic progress.

Adewolu said: “Multiple taxation, as defined in the National Tax Policy of 2017, refers to the imposition of the same or similar taxes on the same income, transaction, or individual by one or more levels of government, often in different jurisdictions.”

This practice, according to Adewolu, does not significantly increase government revenue, rather, it could render otherwise profitable businesses unprofitable, hinder the ease of doing business, and encourage tax evasion.

He added: “The adverse economic effects of multiple taxations are further compounded by the administrative burden imposed on businesses striving to comply with various taxes. This not only discourages investment but also makes Nigeria less competitive in the global marketplace. As a result, businesses in Nigeria find it challenging to compete with their international counterparts, weakening the country’s economic foundations.

“The National Tax Policy of 2017 emphasizes the need to eradicate multiple taxation at all tiers of government and advocates for collaboration among federal, state, and local governments to harmonize and eliminate these burdensome taxes. Additionally, President Bola Ahmed Tinubu has taken proactive measures to address the issue by signing executive orders and establishing the Committee on Fiscal Policy and Tax Reforms.

“The Regional Stakeholders Workshop served as a platform for addressing these challenges, fostering a renewed commitment to eliminating multiple taxes, and creating a business-friendly environment that promotes economic growth. It is hoped that the workshop’s discussions will lead to a more equitable and efficient taxation system that benefits both businesses and the national economy.

“The consensus among stakeholders is that by reevaluating their approach to taxation and adhering to founding principles such as neutrality, efficiency, certainty, simplicity, effectiveness, fairness, and flexibility, Nigeria can unlock its true economic potential and become a more attractive destination for both local and foreign investments.”