Nigeria’s tax and regulatory landscape experienced significant changes in 2020 largely due to the implementation of the Finance Act, 2019 and the impact of COVID-19 pandemic. The pandemic affected almost every sector of the Nigerian economy, with the aviation, oil and gas, and hospitality sectors amongst the worst impacted by the pandemic. However, companies operating in the telecommunications industry and fast-moving consumer goods sector have been less impacted due to the essential nature of their services and products.
The oil and gas sector, which was projected to generate about 28% of Nigeria’s revenue in the 2020 approved budget, experienced challenges during the year as a result of sustained decline in crude oil prices. This led the Federal Government (FG) to revise the 2020 budget and shift focus to non-oil sources to finance the revised budget. Consequently, the FG implemented several fiscal and monetary policies, in line with the economic realities of the time, to improve the economic decline caused by the twin impact of the pandemic and continued drop in crude oil price.
This publication provides a summary of the significant events that occurred in the Nigerian tax and regulatory space in 2020 and highlights the outlook for 2021 which should be anticipated by all stakeholders as the year unfolds.
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