Nigeria could boost its public finances by an estimated US$2.5 billion every year if a proposed United Nations-backed overhaul of global corporate taxation is adopted, according to a new international tax report.

The proposal seeks to change how multinational corporations are taxed by ensuring profits are taxed in the countries where companies generate real economic activity, employ workers and make sales, rather than in jurisdictions where profits are shifted through low-tax structures.

The findings, released by the Tax Justice Network and Public Services International ahead of key UN negotiations on a global tax convention, estimate that countries worldwide could collectively recover about US$500 billion in additional corporate tax revenue each year without increasing tax rates.

For Nigeria, the projected US$2.5 billion annual gain could significantly strengthen government revenues at a time when authorities are pursuing sweeping tax reforms, expanding domestic revenue mobilisation and reducing dependence on borrowing.

The proposed UN framework represents a shift away from the current international tax rules, which critics say allow multinational companies to legally move profits to tax havens, depriving developing economies of billions of dollars in revenue each year.

Negotiators are expected to debate the new framework as countries seek a more equitable global tax system that reflects where economic value is actually created. Supporters argue the reforms would particularly benefit developing nations, including Nigeria, by allowing them to capture a larger share of taxes generated from multinational business activities within their borders.

The estimates are projections based on the proposed UN tax model and do not represent revenue that Nigeria is currently collecting. Adoption of the framework would require international agreement and implementation by participating countries.