Nigeria could collect an additional $2.5 billion a year in corporate taxes from multinational companies if a proposed United Nations framework shifts taxation to where companies actually conduct economic activity.
A Tax Justice Network report said the proposed approach could generate about $500 billion in additional corporate tax revenue globally without increasing tax rates.
The plan seeks to replace the century-old system under which multinational profits are generally taxed according to where companies declare them with a model that focuses on where workers are employed and goods and services are produced and sold.
Supporters call the approach “pay where you play” and argue that it would reduce incentives for companies to shift profits to low-tax jurisdictions where they have little real economic activity.
The proposal is being discussed under the United Nations Framework Convention on International Tax Cooperation.
The report estimated that countries could collectively collect about 24 per cent more corporate tax from multinational firms under the new framework.
It projected particularly large proportional gains for developing countries.
For Nigeria, the report estimated an additional $2.5 billion annually, equivalent to a 641 per cent increase in current collections from multinationals under the methodology used.
India, Brazil, South Africa, Kenya and Jamaica were also identified as potential major beneficiaries.
The UN aims to reach agreement on the new approach by late 2027.
The United States has previously opposed the UN-led process, but analysts cited in the report argued that other countries could still apply their own rules to multinational companies operating within their jurisdictions.
