Nigeria, Developing Countries Renew Push for Fairer Global Tax System

By Benson Daniel

Nigeria and other developing countries have renewed calls for a more equitable international tax system that gives nations greater control over taxing rights and ensures multinational corporations and wealthy individuals contribute their fair share to public finances.

The renewed push followed the fifth negotiating session of the United Nations Framework Convention on International Tax Cooperation, which was held at the United Nations headquarters in New York from August 3 to 13, 2026.

The negotiations focused on proposals aimed at addressing weaknesses in the existing international tax architecture, particularly challenges affecting developing countries’ ability to mobilise domestic revenue and finance essential public services.

The Global Alliance for Tax Justice said the latest session demonstrated growing support for a system that promotes a fairer distribution of taxing rights among countries, strengthens transparency and ensures that wealthy individuals and multinational corporations are effectively taxed.

The first week of the negotiations centred on a newly released zero draft of the proposed framework convention, while the second week focused on two early protocols dealing with the taxation of digital services and the prevention and resolution of tax disputes.

For Nigeria and other countries in the Global South, the discussions are particularly important because weaknesses in the international tax system can limit the amount of revenue governments are able to collect from economic activities taking place within their jurisdictions.

The issue has become increasingly significant as developing countries face rising demands for infrastructure, healthcare, education, social protection and climate financing while operating under tighter fiscal conditions.

A fairer allocation of taxing rights could allow countries to capture more revenue from multinational companies that generate economic value within their territories but may use cross border structures to reduce their tax liabilities.

The negotiations also seek to improve international cooperation on tax matters and strengthen transparency, areas considered essential for addressing tax avoidance, profit shifting and other practices that can weaken government revenues.

GATJ Executive Coordinator, Dr Dereje Alemayehu, said the latest session showed that discussions around reforming the global tax system were advancing, while urging governments to maintain ambition as negotiations continue.

The alliance said countries from the Global South had used the negotiations to highlight weaknesses in the existing system that restrict governments’ ability to tackle inequality and mobilise resources for development, climate action and gender equality.

However, differences remain between developing and developed countries over the extent and direction of reforms. The GATJ said some countries in the Global North had shown less ambition during the negotiations, underscoring the need for stronger commitments in subsequent rounds.

For Nigeria, the negotiations provide an opportunity to strengthen its position on international tax rules while supporting broader efforts to improve domestic revenue mobilisation.

The country has continued to reform its tax administration and expand the use of digital systems as part of efforts to increase compliance and reduce revenue leakages.

The outcome of the UN negotiations could have long term implications for Nigeria and other African economies, particularly if new international rules give source countries greater capacity to tax profits generated from economic activities within their borders.

The next round of negotiations is scheduled to take place in Nairobi from November 30 to December 11, 2026. Before then, member states are expected to submit written comments on the draft framework, with an updated version expected to reflect feedback from the latest session.

The negotiations therefore remain a significant part of the global effort to reshape international taxation and create a system that developing countries believe can better support economic development, public financing and greater fiscal independence.