Nigeria: Country-by-country reporting update

Nigeria: Country-by-country reporting update

Nigeria is one of the 31 countries that signed the Multilateral Competent Authority Agreement (MCAA) for implementing the exchange of country-by-country (CbC) reports. With this action, Nigeria will be entitled to receive CbC reports of multinational enterprises (MNEs) having their headquarters in one of the other MCAA partner countries. The CbC reports will include information such as a summary of income earned and tax paid, and the number of employees deployed by MNEs across the different jurisdictions of operation in a tax reporting period. The tax authorities then will be able to use the CbC reports to conduct certain transfer pricing, base erosion and profit shifting (BEPS)-related risk analysis, and other economic and statistical analyses.

Related content

Companies will be required in 2017 to submit CbC reports on “controlled transactions” conducting during the 2016 financial year. Also, it is most likely that Nigeria will provide rules that will facilitate the exchange of similar information with co-signatories.  In any event, information—such as income earned and tax paid in different jurisdictions by MNEs that are operating in Nigeria—will be available whether or not similar legislation is passed in Nigeria.

KPMG observation

The MCAA implementation is expected to put pressure on MNEs, especially those that have not properly documented and complied with Nigeria’s transfer pricing regulations with respect to the pricing of their related-party transactions.  It will also be easier for the tax authority to identify and investigate MNEs that have actively engaged in BEPS-type transactions.


Read a February 2016 report [PDF 62 KB] prepared by the KPMG member firm in Nigeria

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Request for proposal



KPMG's new digital platform

KPMG's new digital platform