DefinePK

Abstract

Nigeria’s tax system faces several challenges, including inefficiencies, fragmentation of laws, and low compliance rates. These issues limit the government’s ability to generate revenue necessary for sustainable development. To address these shortcomings, this paper proposes a policy model for standardizing Nigeria’s tax system through international collaboration. The model draws from successful tax standardization initiatives in other countries and aligns with global standards such as the Base Erosion and Profit Shifting (BEPS) framework developed by the Organisation for Economic Co-operation and Development (OECD). The paper explores the gaps and opportunities within Nigeria's current tax structure, highlighting the potential benefits of modernization and digitalization in tax administration. By collaborating with international organizations like the OECD, IMF, and World Bank, Nigeria can access technical expertise and financial support needed to reform its tax laws and infrastructure. This proposed model focuses on harmonizing federal and state tax systems, improving compliance through digital platforms, and aligning Nigeria’s tax policies with international norms to foster foreign investment. Key strategies for implementation include capacity building for tax officials, legal reforms, and phased adoption of technology-driven solutions. Despite potential challenges such as resistance to change and technological barriers, this policy model offers a clear roadmap for improving Nigeria’s tax collection efficiency and expanding its revenue base. The paper concludes with recommendations for fostering sustainable tax reform through international partnerships, positioning Nigeria as a regional leader in tax standardization and economic development.
Keywords:  Policy, Model,  Standardizing Nigeria, Tax Systems, International Collaboration.