• Areas of Intervention

    Areas of Intervention

Business Environment Reform / Value Chain DevelopmentBusiness Environment Reforms help to improve the regulatory and institutional environment for MSMEs at local, state and federal levels. This is being achieved by strengthening the capacities of stakeholders from the public and private sector in advocating and implementing reforms that result into better performing MSMEs with increased income generated and sustained employment. The reforms encompass the three administrative levels (federal, state and local) on themes such as: land acquisition and obtaining building permits; company registration, harmonization of the taxation system for MSMEs, enforcement of contracts; policy formulation that directly impact MSMEs (federal level). Support also extends to strengthen the downward linkages of national advocacy platforms to state and local counterparts and sensitize about MSME issues through local radio stations.

The SEDIN Unit 2 (Business Enabling Environment Reforms) is supporting regulatory reform processes through strengthening public-private dialogue among public and private stakeholders with forums held at the federal, state and local government levels in three selected states (Niger, Ogun and Plateau).

Business Environment Reform / Value Chain DevelopmentAt the federal and national levels, SEDIN collaborates with selected public and private partners to improve the business and investment climate. These partners include the Nigerian SME development agency (SMEDAN), the Federal Ministry of Industry and Trade, the Nigerian Governors Forum (NGF), Federal Inland Revenue Service and Federal Ministry of Finance, Organised Private Sector (OPS), advocacy stakeholders such as the Nigerian Economic Summit Group (NESG) through its participation at the policy commissions.. One of the main tools at the federal level is the support of peer-learning from good practices in SEDIN partner states through dialogue platforms.

At the local government areas, Business Development Committees (BDCs) have been assisted to be established and create networks to foster dialogue and cooperation among the private business sector and local government institutions.  Capacity building and technical inputs for identifying and solving priority business obstacles and constraints are rendered and the reform implementation monitored. Links to state level public and private sector institutions are promoted.

Business Environment Reform / Value Chain DevelopmentOn the local government level, Business Development Committees (BDCs) have been created to foster dialogue and cooperation among the private business sector and local government institutions.  Capacity building and technical inputs for identifying and solving priority business obstacles and constraints are rendered. Links to state level public and private sector institutions are promoted.

 

The GIZ/GEMS3 Collaboration on Tax Harmonisation

Background 

GIZ SEDIN and GEMS3 of DFID partnered through a Joint Tax Programme to facilitate Tax Harmonization in Ogun, Plateau and Niger States in Nigeria to support the development of a Business Enabling Environment. The partnership commenced in July 2015 and it has since extended to the Presumptive Tax Implementation too. 

GIZ/GEMS3 focus and approach to tax harmonization 

The focus of the partnership is to reduce incidence of multiple/double taxation, inefficiency in the tax system and improve the business environment by ensuring a state-level harmonized rates and levies laws covering all LGAs, to outline all rates and levies collectible by all LGAS within the state that is consistent with the Nigerian Constitution and the Tax and Levies Act of 1998 as amended.

Objectives of GIZ/GEMS3 Collaborative Tax Intervention

  • A fair and harmonized tax structure introduced by the LGA’S, BIRS/MDA in the state.
  • To increase the state Internally Generated Revenue, bearing in mind that the tax burden on the taxpayers should not be increased unnecessarily. 
  • A simplified, transparent and well-recorded process of tax payment and collection that will boost tax-payer’s confidence.
  • Increased awareness of tax, rates and levies payable/tax payer education
  • Strengthened capacity of revenue officers at both state and LGAs level on tax administration.
  • Improved accountability mechanisms for raising the levels of service delivery.
  • A transparent and credible tax complaints management system.

Achievements

The joint intervention has so far produced the following results that are having positive impact on the tax systems:

  • Legislation
    Tax law that harmonises various taxes and reduces multiple/double taxation, has been passed in Plateau State and at advanced stages of legislative actions in Niger and Ogun State. 

  • Improved Payment System
    Direct bank lodgement by customised teller and point of sale device have been introduced and implemented in 10 LGAs of the three states. 

  • Complaint mechanism
    Complaint Mechanism has been strengthened at both, the state (BIR) and local government level (LGAs) making it easier for complaints on tax issues to be lodged and resolved. 

  • Training/Capacity Building
    Over 400 revenue staff across the three states have been trained. This has improved the skills and knowledge of the revenue and are now delivering improved services. 

  • Public private Dialogue/Tax for Service (T4S) Initiative
    Several PPD mechanism have been established and many PPD workshops held in all the eleven pilot LGAs in the three states where tax issues were discussed and agreements reached on Tax for Service.

 

Following the successes recorded with the tax harmonization programme, the JTP supported the domestication and implementation of the presumptive tax regulation 2017 in Niger, Ogun and Plateau State.