Tag: PwC Nigeria

PwC Nigeria has been accredited as a system integrator for Nigeria’s mandatory e-invoicing system under the Monitoring, Billing and Settlement (MBS) platform.

The accreditation formed part of broader efforts to transform digital tax administration, increase transparency and improve the integrity of transaction-level tax reporting in Nigeria.

Partner and Tax & Regulatory Services Leader, PwC Nigeria, Chijioke Uwaegbute, said the e-invoicing mandate reflected global trends toward greater transparency and real-time oversight in tax reporting.

According to him, PwC would support businesses through the shift by helping them manage complexity, protect value and build trust across the tax ecosystem.

He explained that e-invoicing embeds tax compliance directly into everyday business activity, noting that as transaction data moves into real-time digital systems, organisations must be able to rely on that data for tax reporting, audit and regulatory review.

“This accreditation reinforces PwC’s role in helping organisations build trust, comply and report with confidence. We combine deep tax and regulatory expertise with technology to ensure e-Invoicing processes are accurate, empowering businesses to comply.

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“Where e-Invoicing is treated simply as a technology exercise, organisations risk embedding data inconsistencies and control gaps into their operations. Managing these risks requires tax expertise to be built into how invoicing systems are designed, configured and governed from the outset,” Uwaegbute said.

Under the MBS framework, organisations are required to transmit invoice data to the National Revenue Service (NRS) platform in real time. This embeds tax reporting directly into business operations, with invoice data and control processes applied at the point transactions occur.

The MBS platform replaces traditional paper-based invoicing with a digital validation framework designed to reduce manual errors, improve oversight and enable real-time regulatory review. Accredited system integrators are responsible for enabling secure and reliable connectivity between taxpayers’ systems and the FIRS platform.

Partner and Tax Technology Leader, PwC Nigeria, Tim Siloma said that with the accreditation, PwC Nigeria would work alongside organisations to review invoicing and reporting processes, implement required system integrations and support ongoing compliance as e-Invoicing requirements continue to evolve.

“Technology can automate invoicing. However, interpreting tax requirements and managing risk require tax expertise. e-invoicing works best when tax rules, data controls and enterprise systems are designed together.

“Our tax technology capability brings tax advisory expertise into technology execution, enabling organisations to manage complexity, maintain control and rely on e-Invoicing as compliance becomes embedded into their operations,” Siloma said

Professional services firm, PwC Nigeria, has projected that inflation would decline to 26 per cent in 2025 on the back of monetary policy tightening and improving dynamics in Nigeria’s foreign exchange market.

The projection was made in its latest report, ‘Nigeria’s 2025 Budget and Economic Outlook,’ which provides a comprehensive analysis of the country’s budget and economic prospects for 2025.

PwC outlined that the projected decline in inflation coupled with the implementation of the minimum wage could ease the erosion of real incomes, allowing for a slight recovery in consumer spending.

Organised into three sections, the report’s economic outlook section takes a deep dive into the significant issues that will drive Nigeria’s economic trajectory in 2025, offering considerations for policy and decision-making.

The report noted that inflation rate in the country had surged to 34.8 per cent in December 2024, significantly reducing the purchasing power of consumers by making their money less valuable.

PwC added that inflationary pressure in 2025 means that consumers may struggle to afford essential goods and services, such as food, housing, and healthcare, severely impacting the overall quality of life.

 The report noted that an additional 13 million people could however fall below the national poverty line by 2025, driven by macro-economic pressure points such as rising inflation, interest rate and naira depreciation.

 “Consumers may contend with real income erosion, poverty and limited access to safety nets in 2025, the report said, noting that “The poverty rate in Nigeria is projected to rise significantly, with an additional 13 million people expected to fall below the national poverty line by 2025.”

According to PwC, “The projected increase in poverty rate highlights a critical issue that demands critical measures, as it underscores the growing economic challenges and the need for effective poverty alleviation measures.”

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The report said the impact of policy measures has been limited, as “Existing social safety net programs such as the conditional cash transfer in Nigeria are often inadequate and may not reach the most vulnerable populations, leaving many without necessary support.”

Additionally, the recent N70, 000 increase in minimum wage, according to PwC, only covers 4.1 per cent of the working population, highlighting the limited impact of this measure on alleviating poverty and providing financial relief to the majority of Nigerians.

The report emphasised that “The increase in the minimum wage covers only 4.1 per cent of the working population, implying that consumers might still struggle to maintain improved standard of living due to the impact of the inflationary pressure.”

It also noted the conditional cash transfer to the most vulnerable households authenticated through the National Identification Number (NIN) or the Bank Verification Number (BVN), but pointed out that the impact of this measure has been limited.

 “Low coverage of NIN/BVN among the poor and economically insecure population has slowed the pace of the rollout of the direct benefit transfers,” the report stated.

The report authored by PwC Nigeria’s team of six experts and contributors, also said approximately 33.1 million Nigerians may become food insecure in 2025 due to economic hardship, high inflation and violence in Northern food producing regions.

According to the report, rising food prices have intensified severe food insecurity in Nigeria, leaving an estimated 25.1 million people acutely affected in 2024.

Nigeria’s inflation rate surged to 34.8 per cent in December 2024, primarily driven by rising costs in food (39.8 per cent), hospitality (35.5 per cent), and utilities (31.7 per cent).

PwC Nigeria has announced the admission of three new partners effective, July 1, 2024. They include Marilyn Obaisa-Osula (Consulting & Risk Services), Taiwo Oyaniran (Assurance), and Tim Siloma (Tax & Regulatory Services).

The announcement is part of PwC Africa’s admission of 15 new partners, with 40 per cent being female, marking a significant step towards achieving the firm’s gender representation goals in leadership.

Country Senior Partner, PwC Nigeria, Sam Abu, congratulated the new partners, saying: “Our new partners bring deep expertise and experience in strategic areas that are vital to contributing to Nigeria’s continued growth.

“As leaders, they’ll help our clients navigate challenges and disruptions, building resilience to thrive in an age of continuous reinvention.

“We celebrate their achievements in reaching this career milestone. Together, we’ll continue to power forward to our new frontier, delivering sustained outcomes for our clients and communities.”

Marilyn is Head ESG/Sustainability and Climate Change; she leads the firm’s efforts in supporting clients’ transitions to Green, Circular, and Blue economies across West Africa.

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With over 15 years of experience in business development, market entry, and sustainability, she has directed numerous projects across various sectors, including agriculture, FMCGs, public sector, pharmaceuticals, insurance, etc.

Taiwo is a seasoned chartered accountant with extensive post-qualification experience. He drives PwC Nigeria’s Agribusiness Services, service delivery to international donor agencies, and clients in the Consumer and Industrial Products & Services industry.

Throughout his career at PwC, Taiwo has consistently demonstrated a commitment to the highest service quality delivery, earning recognition from the firm’s quality management programs.

As a passionate advocate for ethics, he has progressed to become the Lead Ethics Officer at PwC Nigeria and the West Market Area of PwC Africa.

As a partner, Taiwo will focus on expanding the firm’s market presence in Agribusiness, International Donor Agencies, and Consumer and Industrial Products and Services, while mentoring young professionals.

Tim is a tax professional with over 15 years at PwC, specialising in Tax Reporting and Strategy. With 11 years of international experience, he has worked in the UK, Kenya, and Nigeria, contributing significantly to the firm’s tax compliance practice.

Tim enhances tax systems for revenue authorities with sustainable solutions in people, processes, and technology.

• Hinges revenue targets for 2024 on oil prices, reform implementation

• N1.32tr infrastructure spending budget insufficient

The Nigerian economy may grow marginally by 3.1 per cent in 2024 on the back of sustained policy reforms, professional services firm, PwC Nigeria, has projected.

PwC, in its latest Nigeria Economic Outlook, highlighting the seven key trends that will shape the nation’s economic trajectory in 2024, said the growth projection is driven by ongoing reforms, recovering oil production, and a proactive policy environment.

The report, which was released on Thursday and made available to The Nation, however, said possible downside risks to this projection include sustained rise in fiscal debt, elevated interest rates, and high inflationary levels.

Others are foreign exchange liquidity pressures, high exposure to shocks in the global value chain, poor non-oil revenues and sector development.

“In terms of sectoral growth, the main drivers of GDP growth in the last 12 months have been the financial services, information and communication, and utilities sectors.

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“The firm expects these sectors to continue to drive growth in the short term. Further, sectoral growth will be driven by a combination of demand dynamics, investment, government reforms and trade dynamics,” the report said.

PwC noted that achieving sustainable growth in 2024 requires balancing ambitious fiscal reforms with effective budget implementation. It also stressed the importance of aligning fiscal and monetary policy to stabilise prices and reach target goals.

The report, authored by PwC Nigeria’s Partner and West Africa Lead, Olusegun Zaccheaus; Lead Economist and Researcher, Omomia Omosomi; and Senior Economist & Researcher, Adesola Borokini, said, for instance, that Nigeria’s ambitious revenue targets for 2024 depend heavily on oil prices and reform implementation.

PwC, while stating that historically, actual revenue realised has averaged less than 70 per cent of Nigeria’s total budget, said “Achieving budgeted oil revenue in 2024 will depend on Organisation of Petroleum Exporting Countries (OPEC) oil production quota, international oil prices, improved security in the oil-producing regions, and geopolitical factors.”

According to the professional services firm, the proposed fiscal reforms have potential to boost non-oil revenue and shape the economy, pointing out, however, that success hinges on effective budgeting and execution.

PwC also identified finding the right framework and instruments to achieve price stability as another key trend that will shape the economic this year. It noted that despite the Central Bank of Nigeria (CBN’s) deployment of several monetary policy tools and instruments to achieve price stability, the inflationary pressure has persisted

The report, therefore, said to succeed, “the CBN must independently pursue inflation goals, emphasising inflation control, and maintaining a stable financial system.”

It also said finding coherence and alignment between fiscal and monetary policy to stabilise prices may enable the achievement of statutory and policy targets in 2024.

“CBN clarity of policy, transparency of market operations and consistent communication will enhance stability to exchange rate price discovery and market activities,” it added.

The report also said undulating pathways to unlocking productivity in the economy is another trend that will shape the economy this year, noting, for instance, that limited fiscal space for public investment and difficulty attracting private investments constrain the ability to make essential infrastructure improvements.

“Infrastructure funding may remain insufficient in 2024. The allocated infrastructure spending budget for 2024 is ¦ 1.32 trillion, falling short of both the World Bank’s suggested 70% infrastructure-to-GDP benchmark (currently at 30%) and the yearly $150 billion requirement specified in the National Integrated Infrastructure Master Plan for 2021- 2025,” PwC said.

The report said security spending in the past nine years amounted to ¦ 14.8 trillion, but noted that despite increased spending, insecurity remains a challenge and jeopardises national stability, negatively affects economic activities and undermines investor confidence.

It also projected persisting vulnerability to external pressures with potential of ‘shocks.’ The report said, for instance, that geopolitical, economic, environmental, political and trade trends will shape the dynamics and outlook for the Nigerian economy in 2024.

“If the Russia-Ukraine war intensifies, it could lead to increased global energy and commodity supply risks. Nigeria may experience increased inflation and food security challenges due to grain import disruptions and high petroleum product cost,” the report said

It further said the outcome of elections in several countries globally, especially USA, UK, and Taiwan may shape the dynamics of trade and capital flows around the world in 2024.

PwC also projected that investors in the Nigerian economy will be cautiously optimistic. According to the firm, foreign portfolio investment flows to the capital market may remain cautious due to residual challenges.

“Investors’ outlook may be dampened by downgrades from FTSE Russell and MSCI, specifically due to delays in capital repatriation. Despite this, Moody’s, Fitch, and S&P maintained a speculative credit rating due to drawbacks on reforms and several fiscal challenges that persist,” it said.

The PwC report, however, said “FDI flows are expected to improve in 2024 driven by notable expansion in the growing ICT and manufacturing sectors.”

Also, the report stated that consumers may likely adjust better to the evolving policy and macro realities. It, however, said consumer spending may be pressured in 2024 due to rising prices of goods and services (increasing food and transportation costs), coupled with lower disposable income.

“However, private consumption is expected to be marginally better than 2023,” PwC said, pointing out, however, that poverty levels are projected to increase to 38.8 per cent in 2024.

“Despite the low unemployment rate in the country, low consumer spending and purchasing power remains an issue, especially in the absence of commensurate increase in minimum wage to mitigate the inflationary growth in the economy,” the report said.