Nigeria and France Strengthen Tax Cooperation with New MoU

Nigeria and France Strengthen Tax Cooperation with New MoU

The Federal Inland Revenue Service (FIRS) in Nigeria has signed a Memorandum of Understanding (MoU) with France’s tax authority to enhance digital tax administration and improve tax cooperation between the two countries .

Digital Tax Administration:The MoU aims to modernize Nigeria’s tax administration by leveraging advanced tools such as AI-powered audits, automated compliance systems, and real-time economic analytics.
Data Sharing: The agreement involves the sharing of aggregated and anonymized economic information, including insights on multinational companies, transfer pricing, and profit-shifting practices.
Capacity Building:The partnership also focuses on developing workforce capacity, with plans to strengthen professional standards and train globally competitive teams for the future of public finance administration .

While the MoU has been hailed as a significant step towards improving tax cooperation and revenue administration, some critics have raised concerns about data security and national sovereignty. They argue that the agreement could compromise Nigeria’s control over its revenue system and expose sensitive economic data.

Despite these concerns, the MoU is expected to bring several benefits to Nigeria, including:

Improved Tax Compliance: The use of advanced technology and data analytics is expected to improve tax compliance and reduce tax evasion.
Increased Transparency: The agreement promotes transparency and cooperation between Nigeria and France, which could lead to increased foreign investment and economic growth.
Capacity Building: The partnership will help build the capacity of Nigerian tax officials, enabling them to effectively manage the country’s tax system .

The MoU between Nigeria and France is a significant step towards strengthening tax cooperation and improving tax administration in Nigeria. While there are concerns about data security and national sovereignty, the agreement has the potential to bring several benefits to the country, including improved tax compliance, increased transparency, and capacity building.