SANs provide insights into how FG should handle tax-related disputes with Multinationals in Nigeria 

Their recommendations come in light of pending cases involving the FIRS,  and multinational companies such as Binance and several oil and gas companies.

In an exclusive interview with Naijaonpoint, prominent lawyers shared their views on how federal agencies can handle these disputes amid growing concerns over job creation and unemployment in the country.

One of the ongoing disputes involves a lawsuit against Binance, which alleges that the cryptocurrency platform deliberately concealed its business activities despite having a “significant economic presence” in Nigeria.

The alleged violations include breaches of Nigeria’s Companies Income Tax (CIT) Act, the Federal Inland Revenue Service (Establishment) Act 2007, the CBN Regulatory Framework for Mobile Money Services, and the CIT Significant Economic Presence (SEP) Order.

In addition to Binance, federal agencies have sued other multinationals, including Meta, Coca-Cola, and Multichoice, citing violations of market practices.

Judgments on these cases are still pending, and there is a possibility that the litigation may reach the Supreme Court for final determination.

Chief Rafiu Oyeyemi Balogun SAN, in an exclusive interview with Naijaonpoint, recommended arbitration as a key method for resolving disputes with multinational companies operating in Nigeria.

Arbitration is a formal process for resolving financial or contractual disputes without resorting to court proceedings.

He further stated that under the provisions of the Income Tax Act (as amended), in addition to civil actions to recover unpaid taxes, the government can initiate criminal proceedings against offending companies and their directors.

Concerning the government’s legal actions against multinationals, he advised a cautious and diplomatic approach:

“We cannot afford to lose our investors. There will be adverse consequences on the economy if multinational entities leave Nigeria. We are battling unemployment, and nothing must be done to aggravate the situation. Arbitration is key to solving these issues. That is my take,” he concluded.

Ebun-Olu Adegboruwa SAN also told Naijaonpoint that he believes in arbitration.

 “And those companies are investors, so the government has to weigh between patriotism—ensuring revenue generation—and the need to allow profit-making for those who have invested in our economy,” he said.

“So these tax disputes should not be subject to normal litigation, which is often delayed and frustrating due to inadequate infrastructure and limited judicial funding,” he added.

Chief Mike Ozekhome SAN noted that while tax disputes between the Federal Government and multinational companies are not new, they are becoming increasingly complex, contentious, and consequential.

Chief Mike Ozekhome SAN noted that while tax disputes between the Federal Government and multinational companies are not new, they are becoming increasingly complex, contentious, and consequential.

 “These entities are deeply involved in sectors such as oil and gas, fast-moving consumer goods, telecommunications, and infrastructure development,” he told Naijaonpoint.

He emphasized that taxation is not merely a financial obligation but a legal duty enforceable by statute—and defaulting entities may incur full tax liability.

“Despite Nigeria having over 440,000 registered companies, only about 120,000 are tax-compliant. Approximately 320,000 companies are in default, leading to a substantial loss of government revenue,” he added.

George Ibrahim SAN told Naijaonpoint that a tax tribunal has already been established by Nigerian law to handle tax-related disputes.

Nevertheless, he advised that the government should sit down at the table with multinational companies to resolve these tax issues amicably.

 “Then, going forward, they will need to comply squarely with the terms,” he said.

He emphasized that the global economy is unsettling for stakeholders, and the federal government and multinationals must collaborate to determine reasonable concessions for compliance, ensuring that, going forward, companies are ready to adhere to Nigerian tax laws.