On 13 April 2023, the Federal Inland Revenue Service (FIRS) disclosed plans to continue participating in the OECD/Inclusive Framework discussions to ensure that Nigeria and other developing countries maximize the benefits of the two-pillar solution. This development followed a technical workshop between the OECD and Nigeria which was held on 4–5 April 2023. The workshop focused on examining the benefits of the two-pillar solution and discussing the position of Nigeria regarding the rules being developed under the two-pillar solution.
Following, the workshop, the FIRS issued a statement making recommendations as follows:
- Nigeria should engage stakeholders to draw up a national strategy to streamline its tax incentives to avoid ceding its tax base to other jurisdictions owing to the implementation of the Pillar Two rules;
- Nigeria should take immediate steps to forge and implement tax policy actions in response to Pillar 2, including, but not limited to, changing the income tax rule to increase its effective tax rate to a minimum of 15% or introducing a qualified domestic minimum top-up tax (QDMTT);
- Nigeria should explore the effective implementation of the Pillar 2 rules for increased tax revenue generation to fund government programmes, boost the economy and ensure that Nigeria remains an attractive investment location; and
- Nigeria should continue to participate in the rule development to protect national interests and improve understanding of the rules to formulate necessary policy responses.