The fiscal changes introduced in 2021 demonstrate the FGN’s commitment to improving Nigeria’s tax and regulatory landscape, especially following the effects of the COVID-19 pandemic on the economy. As a result, Nigeria’s GDP grew by 4.03% (year-on-year) in Q3 2021, showing a sustained growth over the last four quarters since the recession witnessed in Q2 2020. The economic growth may be attributed to the recovery in crude oil prices and production, while incremental changes to the fiscal framework, such as the Finance Act, 2020, enactment of provisions and regulations to capture digital services and leveraging of technology to improve tax and regulator administration have boosted non-oil revenues.
The FGN in a bid to consolidate on the wins in 2021 has designed the 2022 “Budget of Economic Growth and Sustainability” to achieve diversification of the economy with renewed focus on strategies for continued development and growth of the Micro, Small and Medium Enterprises. It is, therefore, hoped that with the continuous improvements of the regulatory and fiscal laws, Nigeria’s economy will witness a sustained growth in 2022.
This publication provides a summary of the key events that occurred in the Nigerian tax and regulatory space in 2021 and highlights the outlook for 2022 which should be anticipated by the stakeholders as the year unfolds.
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