The commitments are:
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).
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.
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. While the information on registered entities is available, BOI is yet to be collected by the Commission. CAC set a January 1, 2019 target to develop a publicly accessible electronic register of the beneficial owners of companies in Nigeria.
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.
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.
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. Nigeria is already collating this information through the Extractive Industry Initiative process and would extend it to other sectors.
MILESTONE 5 : Nigeria will establish a transparent central register of foreign companies bidding on public contracts and buying property.
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. The Bureau of Public Procurement collects information on all companies bidding for public contracts and the Nigeria Open Contracting Portal is currently being worked on as a repository for information on contracts and the companies handling them.
MILESTONE 6 : We commit to joining the pilot initiative for automatic exchange of beneficial information.
Notes: Nigeria has signed agreements with a number of nations, which provide for the Automatic Exchange of Information (AEI) which kicked off on January 1, 2018. These agreements allow the exchange of information between tax authorities of different countries and about financial accounts and investments to help stop tax evasion. Nigeria had entered into Automatic Exchange of Tax Information (AETI) with some foreign countries, including the United Kingdom (UK), particularly on overseas assets owned by Nigerians.
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).
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
MILESTONE 9 : We will work towards full implementation of the principles of the Open Contracting Data Standard (OCDS), focusing on major projects as an early priority.
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. The Nigeria Open Contracting Portal (NOCOPO) was designed in 2017 by the Bureau of Public Procurement with technical support from the Open Contracting Partnership (OCP) in conformity with the Open Contracting Data Standards (OCDS) which is a global standard for presenting contracting data which is expected to be accessible, readable and reusable.
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
Notes: Nigeria joined the OGP initiative in July 2016 and submitted the first of its 2-year National Action Plan in December 2017 with implementation presently ongoing. The government Open Data Policy was launched by the Federal Ministry of Communication and agencies like NEITI that launched its Open Data Policy document in December, 2016 is presently implementing. The pilot test is being conducted in the Ministry of Health, Education, Works, Power & Housing, Petroleum Resources, NNPC, National Primary Health Care Development Agency (NPHCDA), Universal Basic Education Commission (UBEC) and NEITI. Read More
MILESTONE 11 : We will implement the principles of Open Government Partnership and Open Data Charter.
Notes: Nigeria joined the OGP initiative in July 2016 and submitted the first of its 2-year National Action Plan in December 2017 with implementation presently ongoing. The government Open Data Policy was launched by the Federal Ministry of Communication and agencies like NEITI that launched its Open Data Policy document in December, 2016 is presently implementing.
MILESTONE 12 : We commit to undertake IMF Fiscal Transparency Evaluation.
Notes: The Fiscal Affairs Department of the IMF is yet to conduct a Fiscal Transparency Evaluation (FTE) of Nigeria.
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).
Notes: As a member of the EITI, Nigeria is already implementing the principles of disclosure required under the EITI. EITI summary report however shows that Nigeria has made inadequate progress in documenting policy on public disclosure of contracts and licences.
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.
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.
Notes: In its annual oil and gas audits, NEITI captures payments by International Oil Companies (IOCs) to the Nigerian government for the sale of oil, gas and minerals. The last NEITI audit report was however for the 2017 fiscal year released in 2018.
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.
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. The EITI standard requires all implementing countries to publish their Beneficial Ownership Roadmap by January 2017 and commence full implementation by January 2020. To this end, NEITI unveiled the Roadmap on Beneficial Ownership disclosure document designed to push forward the boundaries of implementation of transparency and accountability in the extractive industries in Nigeria on January 8, 2017. Read More
MILESTONE 17 : We will sign up to the Common Reporting Standard Initiative
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.
Evidence(s): Addis Tax Initiative
Notes: The above mentioned agreements are prerequisite to joining the Addis Tax Initiative. However, Nigeria is not one of the over 43 countries that have joined 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.
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 the VAIDS introduction. Also penalties for failure to file or incorrect filing of taxes are provided for in the newly issued Country-by-Country reporting (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.
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.