PwC Nigeria: Here’s what you should know about Nigeria’s Finance Act

Nigeria recently introduced the Finance Act 2020, a legislation that brings about several changes to the fiscal and tax laws in the country. The act came into effect in January of this year, and experts are analyzing how it will impact the tax landscape in Nigeria. Taiwo Oyedele, Partner and West Africa Tax Leader at PwC Nigeria, sheds light on the implications of this act in an interview with CNBC Africa. Oyedele begins by highlighting the significance of the Finance Act 2020 in Nigeria, emphasizing how it marks a crucial turning point in the country's tax history. He explains that the act aims to create a conducive environment for businesses to operate in Nigeria, attracting both local and international investors. Oyedele stresses the importance of maintaining transparency and fairness within the tax system to foster economic growth. One of the key points discussed in the interview is the impact of the Finance Act 2020 on foreign investors. Oyedele mentions that the act provides a more predictable tax regime that gives investors confidence in committing their funds to Nigeria. By offering incentives and simplifying the tax process, the act aims to make Nigeria a more attractive investment destination. Another crucial aspect touched upon is the scalability of the tax laws introduced by the Finance Act 2020. Oyedele explains that the act is designed to be scalable, allowing for future adjustments that can accommodate the evolving needs of the economy. This scalability ensures that the tax laws remain relevant and effective in different market conditions, fostering long-term economic stability. Furthermore, Oyedele addresses the need for consultation and collaboration between stakeholders in implementing the Finance Act 2020. He emphasizes the importance of engaging with industry players to gather feedback and insights that can enhance the effectiveness of the act. This consultative approach ensures that the tax laws are well-received and implemented smoothly across the board. In conclusion, the Finance Act 2020 represents a significant step towards modernizing Nigeria's tax system and creating a more investor-friendly environment. By providing clarity, incentives, and scalability, the act aims to drive economic growth and attract foreign investments. With the guidance of experts like Taiwo Oyedele, Nigeria is poised to navigate the changing tax landscape and capitalize on the opportunities presented by the new legislation.