Nigeria’s policy to tax the digital economy will see it’s revenue rise and contribute about 15 per cent to the growth of the Gross Domestic Product (GDP) by 2025.
Minister of State Budget and National Planning, Prince Clem Ikanade Agba, disclosed this in his keynote address at the 2022 4th Edition of Punuka Annual Lecture, themed, “Taxation of the Digital Economy: The challenges and prospects for the Nigerian economy”.
He said that government is making concerted efforts to prioritise expenditure and place emphasis on resource mobilisation.
Agba noted that the Federal Government has put in place the Strategic Revenue Growth Initiative (SRGI) and the Finance Act to mobilise domestic funds necessary for human capital and infrastructure development that were both drivers and enablers of sustainable economic growth and development.
“The SRGI is designed to improve government revenue and entrench fiscal prudence with emphasis on achieving value for money. A total of 47 Strategic Revenue Growth Initiatives were identified across three thematic areas to achieve sustainability in revenue generation, identify new revenue streams and enhance the enforcement of existing ones as well as achieve cohesion in the revenue ecosystem.
“The digitalisation of the economy has revealed some challenges and shortcomings in the existing tax practice as it affects the allocation of taxing rights and administration of taxes, especially with respect to non-resident taxpayers.”
He added that Nigeria has sought to tackle these issues through a three-pronged approach that consists of strategic changes to tax policy, administration and the legislative framework they are hinged on.