Nigerian Gov Rolls Out New Withholding Tax Regulations

The Federal Government of Nigeria has announced the commencement of updated Withholding Tax regulations, aimed at streamlining tax compliance and boosting revenue. Learn more about the changes.

The Nigerian government has begun implementing the ‘2024 Withholding Tax Regulations’.

T reports that the implementation of Deduction of Tax at Source began on Wednesday, January 1, 2025.

Taiwo Oyedele, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, announced in a statement on his official X account that the kickoff would take place on Wednesday.

He stated that small and medium enterprises, along with manufacturers, are exempt from the new tax regulation.

He characterized the regulation as a measure anticipated to ease administrative difficulties and financial restrictions, consequently promoting growth and innovation in the sector.

He wrote, “As part of the continuing fiscal policy and tax reforms, the 2024 Withholding Tax Regulations—approved in July 2024 and published in the Official Gazette in October 2024—are effective starting today, January 1, 2025.”

Remember that in July 2024, President Bola Ahmed Tinubu sanctioned the Withholding Tax Regulations, which were subsequently published in the Official Gazette by October. These updated regulations took effect on January 1, 2025.

This development arises in the midst of ongoing controversies surrounding Tinubu’s four tax reform bills currently under consideration by the National Assembly.

Although the President has strongly advocated for the tax reforms, governors from Northern regions and other leaders have openly opposed them.