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Tag: Chartered Institute of Taxation of Nigeria (CITN)

  • CITN: tax professionals key to successful reform implementation

    CITN: tax professionals key to successful reform implementation

    The Chartered Institute of Taxation of Nigeria (CITN) has stressed that the successful implementation of the new tax reforms hinges on the conduct and efficiency of tax professionals.

     President of CITN, Innocent Ohagwa, made this assertion at the Institute’s 2025 Fellowship Conferment and Award Dinner in Lagos recently, where 685 members were elevated to fellowship status.

    The President congratulated the new Fellows, reminding them that the new status conferred a greater responsibility of service and leadership, especially as the country prepares for a major, technologically driven shift in its tax administration.

    He said: “The ongoing tax reforms represent one of the most robust and decisive shifts towards a more efficient tax administration in Nigeria. This new era requires more efficient, ethical, and sound tax professionals. As Fellows, you must lead the way.”

     He charged all tax professionals in the country to rededicate themselves to professionalism and deepen their technical competence to ensure the reforms move from paper to practice.

     Earlier, Chairman of the Membership and Professional Conduct Committee, Dr. Yemi Sanni described the fellowship as a public affirmation of excellence and commitment to the highest ethical standards earned through years of diligent practice, continuous learning, and leadership.

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    Sanni urged new fellows to uphold integrity, professionalism, accountability, and service, stressing that the reputation of the Institute is reinforced by the conduct of its members.

    Also speaking, the Special Guest of Honour and Managing Partner of TAC Professional Services, Tunde Adaramaja underscored that the role of tax professionals extends beyond computation, to building trust between the government and the populace.

    He encouraged the new fellows to become mentors, reformers, and entrepreneurs, always aiming to protect the public interest.

    CITN Registrar/Chief Executive, Afolake Oso noted that the fellowship represents integrity, professional excellence, and service, and encouraged fellows to actively serve on the Institute’s committees to expand their impact.

  • CITN warns against giving out clients’ information

    CITN warns against giving out clients’ information

    Chartered Institute of Taxation of Nigeria (CITN) has issued a strong warning to old and newly inducted members not to give out privileged information about their clients unnecessarily.

    Speaking during the induction of new members in Abuja, President, Chartered Institute of Taxation of Nigeria (CITN), Samuel Agbeluyi, cautioned the new entrants against hastiness in wealth accumulation and the dangers of unethical curiosity into clients’ financial records.

    “Don’t be in a hurry. Please, don’t spy at the purse of your client. If you see two billion—because by virtue of your privileged position, you will see a lot of money in your client’s record—it’s not your money.”

     And if it’s not your money, it is not your money. So don’t spy at the purse of your clients. And don’t give out information unnecessarily,” Agbeluyi said.

    He noted that in order to reinforce accountability, CITN has fortified its disciplinary processes.

    According to him, as a regulatory measure, the Council of the CITN has established an investigating panel with the authority to examine cases of professional misconduct involving members. Additionally, the disciplinary tribunal is diligent in carrying out its responsibility to discipline any member found to have violated professional standards.

    He recounted personal experience chairing the investigating panel and described the emotional scenes that sometimes play out during proceedings.

    “It’s a pitiable situation when you see people wailing when the reality is put before them. Even if you cry from now to tomorrow, the chairman knows that he must not go emotional with you. So please run away from that investigation panel,” Agbeluyi said.

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    He noted that if a matter reaches the disciplinary tribunal, it would be tantamount to appearing before a high court.

    He said: “Any decision taken there is regarded as one that could have been taken by the high court. I beg you, do everything to avoid this. I am talking from experience. Don’t be in a hurry to hammer out”.

    He said the institute is also moving to enhance the authority and legitimacy of its certification.

    According to him, customised stamps are now required to be used by tax practitioners in filing tax returns and affixed to professional correspondences.

    He said: “You will need a stamp to be affixed to your correspondences. It shows that you are a bona fide member of the Institute. And it will matter”.

    He explained that the presence of the CITN stamp on documents will carry legal weight and could influence the strength of evidence in legal matters involving tax professionals.

    “We are informing you of the road that you will be turning to ahead,” Agbeluyi said.

    He added that in addition to these internal initiatives, the CITN has intensified engagement with government agencies, advocating for the appointment of tax professionals to key roles in ministries, departments, and agencies (MDAs) to strengthen Nigeria’s tax system from within.

    Agbeluyi also urged the new members to steer clear of complacency and to embrace the institute’s redefined core values—service, teamwork, excellence, and professionalism.

    He said: “You are required to project the Institute positively through ethical conduct and by striving for excellence at all times in your service to employers, clients, and stakeholders”.

    The induction event also offered insights into the evolving legislative environment, particularly the Economic Stabilisation Bill presented by the Presidential Committee on Fiscal Policy and Tax Reforms. The bill, which has already passed in the House of Representatives and is awaiting Senate concurrence, proposes the formal introduction of tax agents to serve as intermediaries between taxpayers and revenue authorities.

    While commending the legislative effort, Agbeluyi noted the need for only certified and competent tax professionals to perform such sensitive roles.

    “The Institute is committed to ensuring that taxation remains a specialised and regulated profession. We have reviewed the Bill and made submissions on areas that need refinement. If our recommendations are taken into account, the Nigerian tax system will be better for it,” Agbeluyi said.

    Also speaking at the event, Professor Yusuf Ali, SAN, who was the Special Guest of Honour, urged inductees to maintain impeccable ethical standards, drawing parallels with the integrity of public commentators.

    “For those of us who have the temerity to come into the open and talk about people and criticize systems, the least you can do is to ensure that, like Caesar’s wife, you are above board,” Ali said.

    He warned against tax evasion, noting that tax professionals must never be caught in contradictions between their practices and their ethical obligations.

    He said: “It should never be said about us that we are caught in the web of what we are doing, that we are discouraging others from doing. Tax evasion should be absolutely foreign to all of us”.

    He urged the institute to continue strengthening preventive mechanisms against professional misconduct, rather than merely reacting to infractions.

    “We should put in place systems that will discourage people from running foul of the ethics of the practice,” Ali said.

    Chairman, Membership & Professional Conduct Committee, CITN, Dr. Titilayo Fowokan reminded inductees that their membership signifies a commitment to national development.

    “By attaining membership in CITN, you are not only joining a distinguished body of tax professionals but also committing to upholding the highest standards of ethics, professionalism, and excellence in taxation practice in Nigeria.

    “The importance of taxation in national development cannot be overemphasized. We play a crucial role in ensuring compliance, promoting fiscal responsibility, and contributing to economic growth. The knowledge and skills you have acquired will serve as invaluable tools in addressing challenges within Nigeria’s tax system and shaping its future,” Fowokan said.

  • Taxation institute confirms appointment of new chief

    Taxation institute confirms appointment of new chief

    The Governing Council of Chartered Institute of Taxation of Nigeria (CITN) has confirmed the appointment of Mrs. Afolake Oso as registrar/chief executive.

    In a statement, it said, Oso joined the service as a manager in research in 2008 where she rose to acting head of Education and Research in 2015.

    She was confirmed as substantive head of the department same year, and was later promoted to assistant director in 2016.

     Oso was redeployed to Exams and Student Affairs in 2017. In 2018, she was made head of Corporate Affairs.

    In 2020, she was appointed acting deputy director of Corporate Services, Membership and External Relations.

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    To further reposition and rebrand the institute for greater effectiveness, the council, in recognition of her performance, promoted her to deputy registrar of Technical and Professional Services in 2021/

    She served in this capacity till she was appointed acting registrar/chief executive in January. Oso is a lawyer.

    The new chjief executive has attended local and international training, including a one-month Policy, Strategy and Leadership Course 45 (PSLC) at National Institute for Policy and Strategic Studies in Jos.

  • Controversy over 7.2 per cent VAT rate

    MIXED reactions on Thursday trailed the 7.2 per cent Value Added Tax (VAT) proposed by the Federal Executive Council (FEC).

    The Chartered Institute of Taxation of Nigeria (CITN) lauded the increase, saying it was long overdue.

    According to the institute, the proposal will help government to realise its developmental objectives.

    But, the Manufacturing Association of Nigeria (MAN) faulted the timing, saying it is inappropriate.

    The association said the step will spur spontaneous increase in price of goods and services.

    However, the President of the Chartered Institute of Taxation of Nigeria (CITN), Dame Olajumoke Simplice, defended the new rate, urging the government to sustain it.

    Speaking on Thursday with The Nation, she said despite the increase, Nigeria’s VAT is still one of the lowest in the world, adding that the new rate should be pegged at 7.5 per cent or 10 per cent.

    Noting that the last VAT review was 25 years ago, she said Nigeria has the lowest VAT rate in the ECOWAS sub-region.

    According to the CITN boss, the VAT review should take place every five years, stressing that it should be tax on consumption.

    She said: “VAT is a tax on consumption and is only paid when you consume goods or pay for services. Nigeria’s decision to raise VAT is good for its trade relations with other countries. Besides, VAT is very easy to collect and should be utilized for development of the economy.”

    Simplice said government should also be held accountable for the funds from the VAT are spent. In her view, the funds should be judiciously used for developmental projects.

    Acknowledging that the new VAT rate will increase prices of goods, she said manufacturers will pass the effects to consumers.

    Simplice advised tax payers to form pressure groups to monitor tax revenue spending and ensure accountability on the part of government.

    The International Monetary Fund (IMF) has consistently advised Nigeria to raise its VAT and channel the funds to developmental projects and budget funding.

    At the conclusion of the IMF 2018 Article IV Consultation with Nigeria , its Executive Board emphasized the need for a growth-friendly fiscal adjustment, which front-loads the non-oil revenue mobilisation and rationalises current expenditure to reduce the ratio of interest payments to revenue to a more sustainable level and create space for priority social and infrastructure spending.

    The board said: “In addition to ongoing efforts to improve tax administration, directors underlined the need for more ambitious tax policy measures, including reforming the value added tax (VAT), increasing excises, and rationalising tax incentives.

    Speaking on tax reforms at the Fiscal Monitor Session of the event, IMF Assistant Director, Fiscal Affairs Department, Cathy Pattillo, said tax reform in Nigeria was important.

    She said IMF’s main recommendation for Nigeria is the need for a comprehensive tax reform that would sustainably increase non-oil revenue.

    Pattillo added: “The reason why that is needed is that Nigeria has one of the lowest ratios of non-oil revenue to Gross Domestic Product (GDP) at around 3.4 per cent in the world. And the total tax revenue to GDP at six per cent is also very low compared to peers”.

    She said that the interest to tax ratio is low, adding that the funds realised should be spent on important developmental projects, including infrastructure and human capital. She also advised Nigeria increase excise taxes, and begin aggressive streamlining of tax incentives and exemptions.

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    MAN said although, government should generate more revenue to fund its developmental initiatives, owing to declining revenue from oil, the timing was inappropriate because the minimum wage of N30, 000 has just been agreed upon.

    MAN Director-General Segun Ajayi-Kadir said in a statement that the increase could send a wrong signal that the government was not sensitive to the plight of the low- and middle-income earners, who are in the majority.

    He also said it was a case of government taking back what was given with the right hand through the National Minimum Wage with the left hand through the increase in VAT.

    Ajayi-Kadir said the economy had just recently exited recession, with the fragile growth rate of less than two per cent recorded in 2018, which should be delicately managed.

    He said Nigeria’s precarious macro-economic condition required palliatives that would improve investment and not higher tax burden.

    Ajayi-Kadir said: “The prevailing high lending rate, double digit inflation, low per capita income, high unemployment rate and a low 1.91 per cent growth rate amidst 2.6 per cent population growth rate that are already cumulatively limiting competitiveness could be further worsened.”

    The DG also said the burden of the VAT increase will be shifted to consumers that are already struggling, adding that the economy will experience demand crunch, while inventory of unsold items would soar.

    He said the profitability of manufacturing concerns will be negatively impacted, while many factories will witness serious downturn or wind down operations.

    Ajayi-Kadir added: “This will also worsen the already high unemployment position of the country, which is above 23 per cent, as Nigerians currently employed by manufacturing concerns and other businesses may join the reserved army of unemployed and further bloat the unemployment rate in the country.”

    He advised the government to widen the tax net rather than increase the rate to meet the growing need for more revenue to address the development objective of the country.

    Ajayi-Kadir  added:  “There is also the need to harmonize taxes/levies/fees payable by businesses in the country so as to attract more investment that would translate to higher productivity and more tax revenue for the government in the medium and long term,” it counseled.

    Rejecting the new rate, the People’s Democratic Party (PDP) in a statement by its spokesman Kola Ologbondiyan, said Nigerians cannot bear the burden of the increase, given the prevailing agonising economic situation.

    Describing the move as anti-people and suppressive, the party said it has confirmed that government is “extremely exploitative, inconsiderate and absolutely insensitive” to the suffering of Nigerians.

    The party maintained that the decision was in bad faith and cannot be justified under any guise.

    PDP said: “Indeed, only an administration that does not have the mandate of the people can seek to adopt such oppressive stance against its citizens.

    ”President Buhari ought to be aware that an increase in VAT will worsen our decrepit economy and put more pressure on families and business as it will result in increase in costs of goods and services that have direct bearing on the welfare of the people.

    ”Our party charges the Buhari Presidency not to further punish Nigerians by imposing harsh tax regime to make up for its crass incompetence and lack of capacity to effectively harness and manage our resources to create wealth for the benefit of the people.

    PDP urged the National Assembly to protect Nigerians and save the nation from collapse by rejecting “this injurious decision” by taken by the government.

    Amid the controversy, the Senate Committee on Finance has said it will invite the Minister of Finance and the Chairman of the Federal Inland Revenue Service (FIRS) to shed light on the reasons for the proposed increase.

    Reacting to the announcement by the Minister of Finance, Hajia Zainab Ahmed, after a Federal Executive Council Meeting yesterday, Senator Solomon Adeola, (APC, Lagos West), Chairman of the Senate Committee on Finance, said that the proposed increase has generated mixed reactions among Nigerians because of its likely effects on living standard and the economy.

    He said: ”We are glad that the Minister of Finance indicated that the VAT Act will have to be amended for the increase to take effect. But we are concerned about the current economic situation of the country as it affects the generality of the people.” Senator Adeola stated.

    He stated that the interaction with the two key officials of the Federal Government will form part of the basis for possible amendments of the VAT Act and to assuage any sentiments against the proposed VAT increase if eventually the Act is amended.