Ican 2025 Advanced Taxation Question 3

The growth and development of digital trade facilitate globalisation through the establishment of borderless economic relationship. The digital economy in the first quarter of 2024 accounted for up to 15% of global gross domestic product (GDP) and is expected to contribute one-fifth of GDP by 2026. The Africa Digital Economy Summit (AfriDES) reported that the Nigeria’s digital economy’s contribution to the nation’s GDP in quarter 1 of 2024 was 14.8%. However, as a result of the nature of transactions involved in the digital space, Nigeria, like many other developing countries, is yet to reap the full potentials of digital economy. The Tax Reform Committee is seeking for memoranda from accounting and tax professionals and the general public, on how the nation’s digital economy can be repositioned for better contribution to the nation’s development. As a professional accountant with experience in fiscal policy, you have been invited by the Committee to present a memorandum on digital economy in Nigeria.