Nigeria loses about $2.9 billion yearly to tax waivers granted multinational companies, said Oxfam in Nigeria Country Director Constant Tchona.
Poor governance and lack of transparency erodes the fiscal incentives granted with the hope of stimulating investments into the country. Taxpayers, he said, often opted to negotiate with corrupt tax administration staff in return for gratifications and reduced sums.This action, Tchona explained, is against the sanctions imposed by the Company Income Tax Act for such conduct.
“Taxpayers often opt to negotiate with corrupt tax administration staff in return for gratifications and reduced sums to the coffers of the government. This is despite the sanctions imposed by the same Company Income Tax Act for such conduct,” he said.