The commitments are:

COMMITMENT : BENEFICIAL OWNERSHIP TRANSPARENCY


MILESTONE 1 : Nigeria is committed to establishing a public central register of company beneficial ownership information (BOI). (The President of Nigeria has presented a draft Money Laundering Prevention and Prohibition Bill to the National Assembly in February, 2016. This bill has defined beneficial ownership in line with FATF standards).

Status: UNDERWAY

Evidence(s):

Notes: The Senate of the Federal Republic of Nigeria passed the Companies and Allied Matters (Repeal and Re-enactment) Bill 2018 on Tuesday, May 15, 2018 with Beneficial Ownership as one of the key provisions around ease of doing business in Nigeria. These provisions in this legislative framework will mandate the disclosure of beneficial interests in a company’s shares and prescribe punitive measures for failing to disclose such interests. In this regard, where a person holds interests on behalf of another in a nominal capacity in a company, both parties (the owner and the nominal holder) are required to disclose the beneficial interests to the company.


MILESTONE 2 : Nigeria has a database of registered companies, charities and trustees and provides access to lawyers and law enforcement agencies to BOI for companies and other legal entities registered within our jurisdiction.

Status: UNDERWAY

Evidence(s): Fact sheet on Beneficial Ownership

Notes: Following the NEITI pilot, issuing a roadmap for implementing beneficial ownership reforms, the Corporate Affairs Commission (CAC) was saddled with the on-going responsibility of leading engagement on beneficial ownership and hosting the disclosure register for centrality of information, with NEITI performing complementary functions.


MILESTONE 3 : We are committed to implementing bilateral arrangements that will ensure law enforcement in one partner country has full and effective access to the BOI of companies incorporated in the other partner country.

Status: UNDERWAY

Evidence(s):

Notes: Nigeria's signing on to the United Nations Convention against corruption (UNCAC) is a step at creating an enabling environment for exchange of information on stolen assets. During the global forum on asset recovery in December 2017, Nigeria was also a focus for asset recovery efforts


MILESTONE 4 : We are taking steps to ensure transparency of the ownership and control of all companies involved in property purchase and public contracting. Nigeria is already collating this information through the Extractive Industry Initiative process and would extend it to other sectors.

Status: UNDERWAY

Evidence(s):

Notes: The Bureau of Public Procurement (BPP) has concluded plans to launch a citizen engagement portal that will feed interested persons with updates on government-approved projects. We are yet to see concrete results.


MILESTONE 5 : Nigeria will establish a transparent central register of foreign companies bidding on public contracts and buying property.

Status: UNDERWAY

Evidence(s):

Notes: The most recent development on this commitment is the Corporate Affairs Commission issuance of a circular for all entities to disclose the beneficial owners in their annual report starting from the 2017 annual report.


MILESTONE 6 : We commit to joining the pilot initiative for automatic exchange of beneficial information

Status: UNDERWAY

Evidence(s):

Notes: Nigeria has signed agreements with a number of nations, which provide for the Automatic Exchange of Information (AEI). These agreements allow the exchange of information between tax authorities of different countries and about financial accounts and investments to help stop tax evasion. Countries who are party to this agreement include Switzerland, Panama, the Bahamas and other tax havens.


COMMITMENT : PREVENTING THE FACILITATION OF CORRUPTION


MILESTONE 7 : Nigeria commits to deploying public-private information sharing partnerships to bring together governments, law enforcement, regulators and the financial sector to detect, prevent and disrupt money laundering linked to corruption. (Within the financial sector, such a partnership exists and brings together the Chief Compliance Officers of banks, law enforcement and security agencies).

Status: UNDERWAY

Evidence(s):

Notes: Within the financial sector, such a partnership exists and brings together the Chief Compliance Officers of banks, law enforcement and security agencies.


MILESTONE 8 : We will work together with interested countries to share information between respective public-private partnerships to ensure the most effective response to international money laundering

Status: PENDING

Evidence(s):

Notes:


COMMITMENT : PUBLIC PROCUREMENT AND FISCAL TRANSPARENCY


MILESTONE 9 : We will work towards full implementation of the principles of the Open Contracting Data Standard, focusing on major projects as an early priority

Status: PENDING

Evidence(s):

Notes: Governmental agencies are urged to follow Open Contracting Data Standards but there is no evidence that they do. http://www.budeshi.ng/home/data collects data on open contracts. While between 2016 and 2017, contracts were monitored, there are no entries for 2017.


MILESTONE 10 : We will apply the Open Contracting Data Standard to the following major projects:

  • Development of Refineries in the oil Sector
  • Building of Health Centres and Improvement of Health Services
  • Building of Roads and other Infrastructures
  • Building of Schools and Improving Transparency in the Management of Education Funds
  • Investment in the Power Sector

Status: PENDING

Evidence(s):

Notes: Governmental agencies are urged to follow Open Contracting Data Standards but there is no evidence that they do. http://www.budeshi.ng/home/data collects data on open contracts. While between 2016 and 2017, contracts were monitored, there are no entries for 2017.


MILESTONE 11 : We will implement the principles of Open Government Partnership and Open Data Charter.

Status: PENDING

Evidence(s): Open Data

Notes:


MILESTONE 12 : We commit to undertake IMF Fiscal Transparency Evaluation.

Status: PENDING

Evidence(s):

Notes:


COMMITMENT : EXTRACTIVE INDUSTRY (OIL SECTOR AND SOLID MINERALS)


MILESTONE 13 : We commit to work together to enhance company disclosure on the payments to governments for the sale of oil, gas and minerals, complementing on-going work within the Extractive industry Transparency Initiative (EITI). (As a member of the EITI, Nigeria is already implementing the principles of disclosure required under the EITI).

Status: UNDERWAY

Evidence(s):

Notes: As a member of the EITI, Nigeria is already implementing the principles of disclosure required under the EITI


MILESTONE 14 : Nigeria is already reporting progress through the EITI working groups and will continue to work with interested countries to build a common understanding and strengthen the evidence for transparency in this area.

Status: UNDERWAY

Evidence(s):

Notes:


MILESTONE 15 : We welcome voluntary disclosures through EITI reporting and by some major companies regarding payments to governments for the sale of oil, gas and minerals.

Status: UNDERWAY

Evidence(s): EITI summary report

Notes: EITI summary report shows that Nigeria has made inadequate progress in documenting policy on public disclosure of contracts and licences.


MILESTONE 16 : We welcome the new 2016 EITI standard, in particular the requirements on beneficial ownership and the sale of the state’s share of production.

Status: UNDERWAY

Evidence(s):

Notes: Despite inadequate progress in documenting policy on public disclosure of contracts and licences, Nigeria has shown meaningful progress in meeting the requirements under each category of the 2016 EITI standard.


COMMITMENT : TAX TRANSPARENCY


MILESTONE 17 : We will sign up to the Common Reporting Standard Initiative

Status: UNDERWAY

Evidence(s): Tax Treaty Related Measures

Notes: On August 17, 2017, Nigeria became the 94th jurisdiction to sign the Multilateral Competent Authority Agreement(MCAA) and the 71st to sign the Multilateral Convention to Implement Tax Treaty Related Measures to prevent Base Erosion and Profit Shifting (MLI) on the common reporting standard, at the OECD headquarters in Paris.


MILESTONE 18 : We commit to join the Addis Tax initiative.

Status: PENDING

Evidence(s): Addis Tax Initiative

Notes: Nigeria is not one of the 43 countries that have signed up to the Addis Tax Initiative.


MILESTONE 19 : We commit to reviewing penalties and other actions against professional enablers of tax evasion, including for corporations that fail to prevent their employees from facilitating tax evasion.

Status: UNDERWAY

Evidence(s): EITI summary report

Notes: Efforts such as the introduction of VAIDS by the FG on July, 2017 and an expiration date, has compelled tax compliance and marked improvements such as the increase in tax payers from 13m to 19.3million in the period of VAIDS introduction. Also penalties for failure to file or incorrect filing of taxes are provided for in the newly issued CbCR Regulations.


MILESTONE 20 : We support the development of a global commitment for public country by country reporting on tax information for large multinational enterprises.

Status: COMPLETED

Evidence(s):

Notes: The FIRS issued the Income Tax Country by Country Reporting Regulations (CbCR Regulations), in June 2018. They apply only to Multi-National Enterprises (MNE) Groups that meet certain revenue benchmark and tax-residency criteria.


 

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