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Tag: NRS

  • South East happy with appointment of Ihedioha into NRS – Onoh

    South East happy with appointment of Ihedioha into NRS – Onoh

    The former Southeast spokesperson to President Bola Ahmed Tinubu and Chairman of the Forum of Former Members of the Enugu House of Assembly, Denge Josef Onoh, has defended the appointment of Obinna Ihedioha as an Executive Director, People, Stakeholders & Communication in the Nigeria Revenue Service (NRS).

    Onoh described the Federal Government’s appointment as a recognition of professionalism and urged the protesting southeast APC youths to embrace unity since the appointment is merit-driven and aligned with national interest.

    Onoh noted that Ihedioha is a senior-level strategist with over 24 years of distinguished experience in strategy, governance, public sector reform, portfolio management, accountability frameworks, human capital strategy, and stakeholder management.

    He said that Ihedioha’s professional record is exemplary and directly relevant to his new role, where the Directorate oversees human capital management, workforce development, corporate communications, and stakeholder engagement; ensuring a skilled workforce, coherent messaging, strong institutional relationships, and a trusted organizational brand for the NRS.

    Ihedioha had served as the Senior Adviser and Head of Strategy at the Nigeria Sovereign Investment Authority (NSIA) where he managed an investment portfolio exceeding $4 billion and played a pivotal role in establishing flagship national platforms such as the Africa Sovereign Investment Platform, InfraCredit, Nigeria Mortgage Refinance Company, Development Bank of Nigeria, and RIPLE (Renewable Investment Platform for Limitless Energy).

    Ihedioha also held the positions of Deputy Managing Director at the UK-Nigeria Infrastructure Advisory Facility (UKNIAF); Senior Infrastructure Investment Adviser for Adam Smith International, supporting the Presidency and Ministry of Power – Contributing to high-level national and international bodies, including as a member of the G20 Technical Working Group.

    Ihedioha also worked as the World Bank Climate Finance Working Group; Presidential Task Force on Power and the Nigeria Economic Management Team. He had served on the boards of impactful organizations such as CFG Africa, FundiCo, and the Clean Energy Local Currency Fund UKNIAF.

    Onoh stated that Ihedioha’s educational credentials further underscore his expertise, holding a BSc in Political Science from the University of Abuja; an MSc in Public Policy & Management from the University of Manchester, and alumni status from the Harvard Kennedy School of Government.

    Onoh commended the Chairman of the NRS for making one of the best professional choices in appointing Obinna, rather than resorting to political selection, saying that the decision clearly demonstrates the agency’s prioritization of professionalism, competence, and proven track record as the foundation for delivering tangible positive outcomes to Nigerians.

    “In an institution tasked with revenue optimization and national development, such merit-based appointments are essential for progress. To the APC youth and anyone questioning Obinna’s suitability merely because his brother is a former governor or because he is not perceived as an APC member; this line of criticism stems from a narrow partisan mindset that undermines a progressive vision for a better Nigeria.

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    “True nation-building demands that we value expertise, dedication, and service to the country above narrow party loyalty. Those who insist on reducing high-level appointments to political patronage alone have no place in the inclusive, talent-driven future we are all working toward one where Nigerians from diverse backgrounds contribute to shared prosperity.”

    Onoh told the protesting APC youths involved that no amount of political pressure or orchestrated campaigns will compel President Bola Ahmed Tinubu to reverse this appointment, revealing that the President remains resolutely focused on ensuring professionalism over partisan politics, particularly in critical sectors of the economy and administration like the Nigeria Revenue Service, which he said is vital to national revenue generation and fiscal stability.

    “Any overbearing attempt to politicize this merit-based decision and reduce it to partisan calculations will not be tolerated, as it runs counter to the administration’s core commitment to competence, national interest, and inclusive governance. The Southeast is extremely proud of Ihedioha’s outstanding professional service record and unwavering commitment to the service of our nation.”

    Onoh urged the APC youths to channel their collective energy into galvanized support for the party, the government, and the nation, rather than dissipating it on issues that distract real development.

  • Kano assembly Speaker condemns killing of woman, six children

    Kano assembly Speaker condemns killing of woman, six children

     The Speaker of the Kano State House of Assembly, Alhaji Jibril Falgore, has condemned the killing of a woman and her six children in the state, describing the incident as barbaric and heartbreaking.

    Falgore, in a statement issued by his Chief Press Secretary, Kamaluddeen Shawai, welcomed news of the arrest of three suspects by the Nigeria Police Force .

    He urged security agencies to carry out thorough investigations to ensure that all those involved in the crime were brought to justice.

    The speaker commended the swift response of the police, noting that crimes of such nature must not be allowed to go unpunished in the state.

    “This shocking incident committed against an innocent woman and her children is painful and unacceptable. While we commend the police for arresting suspects, investigations must be exhaustive until justice is fully served,” he said.

    Falgore aligned himself with the call by  Gov. Abba Yusuf, for prompt and transparent handling of the case to reassure residents of the government’s commitment to protecting lives and property.

    He assured of the Kano State House of Assembly’s support to security agencies in their efforts to maintain peace and security across the state.

    The speaker expressed condolences, on behalf of the assembly, to the families of the victims, the government and the people of Kano State, urging residents to remain calm and law-abiding.

    He prayed for the repose of the souls of the deceased and asked Allah to grant their families the fortitude to bear the loss.

    NAN reports that the police announced on Sunday the arrest of three suspects in connection with the killings at Dorayi Charanchi Quarters within the state metropolis.

    The police spokesperson in the state, Haruna Kiyawa, a superintendent of police, confirmed the arrests in a statement.

    He said that the operation followed direct orders from the Inspector-General of Police (IGP), Kayode Egbetokun, under the supervision of the Commissioner of Police, Kano, Ibrahim Bakori.

    He said a team of crack operatives leveraged intelligence-led policing to apprehend the suspected masterminds.

    Kiyawa said the suspects were apprehended during a targeted sting operation conducted between 10:00 p.m. on Jan. 17 and 4:00 a.m. on Jan. 18, shortly after the incident was reported.

    (NAN)

  • NRS: no VAT on bank charges for cash transferred to customers

    NRS: no VAT on bank charges for cash transferred to customers

    The Nigeria Revenue Service (NRS) has explained that the 7.5 per cent Value Added Tax (VAT) will apply only to charges collected by banks for their services and not to the actual money transferred by customers.

    The clarification followed widespread reports suggesting that VAT would be charged directly on bank transfers and other customer transactions, a claim the NRS described as incorrect and misleading.

    In a statement issued yesterday, the revenue service said VAT has always applied to banking services under Nigeria’s tax system and was not introduced by the new Nigeria Tax Act.

    The statement, signed by the Special Adviser on Media to the NRS Chairman, Dare Adekanmbi, said the new law did not create any fresh tax burden on bank customers.

    “The Nigeria Tax Act did not introduce VAT on banking charges, nor did it impose any new tax obligation on customers in this regard,” the statement said.

    According to the NRS, claims circulating in sections of the media that VAT is being newly imposed on electronic money transfers, banking fees or commissions are false.

    “The Nigeria Revenue Service wishes to address and correct misleading narratives circulating in sections of the media suggesting that Value Added Tax has been newly introduced on banking services, fees, commissions, or electronic money transfers. This claim is categorically incorrect,” it said.

    The service explained that VAT has always applied to service charges collected by banks and other financial institutions.

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    “VAT has always applied to fees, commissions, and charges for services rendered by banks and other financial institutions under Nigeria’s long-established VAT regime,” the statement said.

    It stressed that VAT is charged only on the service provided by the bank and not on the amount of money a customer transfers or withdraws.

    “VAT is not charged on the amount of money transferred or withdrawn. It applies only to the service charge or commission imposed by the bank,” the NRS said. “For example, if a bank charges N10 for a transfer, VAT of 7.5 per cent, which is ₦0.75, applies to that ₦10 charge, not to the amount being transferred.”

    The NRS also said interest earned on savings accounts, fixed deposits and similar bank deposits is not subject to VAT.

    “Interest income is not a supply of goods or services and therefore does not attract VAT under the Nigeria Tax Act,” the statement said.

    Addressing concerns about the cost of living, the revenue service said basic food items and essential goods remain exempt from VAT under the law.

    “The Nigeria Tax Act expressly exempts basic food items and essential goods from VAT in order to protect consumers and reduce the cost of living,” it said.

    The NRS added that essential medical services, pharmaceutical products, tuition and core educational services provided by recognised institutions are also exempt from VAT.

    On what has changed under the current tax framework, the service explained that the focus is on compliance and enforcement rather than the introduction of new VAT rules.

    “What changed is compliance and enforcement, not the law,” the statement said. “Financial institutions are being reminded of their existing obligation to remit VAT already charged and collected from customers.”

    The NRS said the Nigeria Tax Act did not introduce any new VAT burden on ordinary Nigerians, especially in areas such as savings, food, healthcare and education.

    “The Act did not introduce VAT on savings, basic food, medical care, education, or essential consumption. Claims suggesting otherwise are misleading and incorrect,” it said.

    The revenue service urged Nigerians to ignore false information and rely on official statements for accurate and up-to-date tax information.

    “The Nigeria Revenue Service urges members of the public and all stakeholders to disregard misinformation and to rely exclusively on official communications for accurate, authoritative, and up-to-date tax information,” the statement added.

  • NRS clarifies VAT on bank charges, says transfers not taxed

    NRS clarifies VAT on bank charges, says transfers not taxed

    The Nigeria Revenue Service has clarified that the 7.5 percent Value Added Tax (VAT) will apply only to charges collected by banks for their services and not to the actual money transferred by customers.

    The clarification followed widespread reports suggesting that VAT would be charged directly on bank transfers and other customer transactions, a claim the NRS described as incorrect and misleading.

    In a statement issued on Thursday and made available to journalists, the revenue service said VAT has always applied to banking services under Nigeria’s tax system and was not introduced by the new Nigeria Tax Act.

    The statement, signed by the Special Adviser on Media to the NRS Chairman, Dare Adekanmbi, said the new law did not create any fresh tax burden on bank customers.

    “The Nigeria Tax Act did not introduce VAT on banking charges, nor did it impose any new tax obligation on customers in this regard,” the statement said.

    According to the NRS, claims circulating in sections of the media that VAT is being newly imposed on electronic money transfers, banking fees, or commissions are false.

    “The Nigeria Revenue Service wishes to address and correct misleading narratives circulating in sections of the media suggesting that Value Added Tax has been newly introduced on banking services, fees, commissions, or electronic money transfers. This claim is categorically incorrect,” it said.

    The service explained that VAT has always applied to service charges collected by banks and other financial institutions.

    “VAT has always applied to fees, commissions, and charges for services rendered by banks and other financial institutions under Nigeria’s long-established VAT regime,” the statement said.

    It stressed that VAT is charged only on the service provided by the bank and not on the amount of money a customer transfers or withdraws.

    “VAT is not charged on the amount of money transferred or withdrawn. It applies only to the service charge or commission imposed by the bank,” the NRS said. “For example, if a bank charges ₦10 for a transfer, VAT of 7.5 per cent, which is ₦0.75, applies to that ₦10 charge, not to the amount being transferred.”

    The NRS also said interest earned on savings accounts, fixed deposits, and similar bank deposits is not subject to VAT.

    “Interest income is not a supply of goods or services and therefore does not attract VAT under the Nigeria Tax Act,” the statement said.

    Addressing concerns about the cost of living, the revenue service said basic food items and essential goods remain exempt from VAT under the law.

    “The Nigeria Tax Act expressly exempts basic food items and essential goods from VAT to protect consumers and reduce the cost of living,” it said.

    The NRS added that essential medical services, pharmaceutical products, tuition, and core educational services provided by recognised institutions are also exempt from VAT.

    On what has changed under the current tax framework, the service explained that the focus is on compliance and enforcement rather than the introduction of new VAT rules.

    “What changed is compliance and enforcement, not the law,” the statement said. “Financial institutions are being reminded of their existing obligation to remit VAT already charged and collected from customers.”

    The NRS said the Nigeria Tax Act did not introduce any new VAT burden on ordinary Nigerians, especially in areas such as savings, food, healthcare, and education.

    “The Act did not introduce VAT on savings, basic food, medical care, education, or essential consumption. Claims suggesting otherwise are misleading and incorrect,” it said.

    The revenue service urged Nigerians to ignore false information and rely on official statements for accurate and up-to-date tax information.

    “The Nigeria Revenue Service urges members of the public and all stakeholders to disregard misinformation and to rely exclusively on official communications for accurate, authoritative, and up-to-date tax information,” the statement added.

  • Adegoke hails NRS boss on birthday

    Adegoke hails NRS boss on birthday

    Chief Gbite Adegoke, also known as ‘GMA’ has felicitated with the Chairman of Nigerian Revenue Services (NRS), Dr. Zaccheus Adedeji, on his birthday.

    He described Adedeji as a pride of Ogbomosoland and a worthy national asset.

    A statement by Adegoke lauded the NRS boss exemplary leadership and outstanding performance at the helm of the nation’s revenue administration, noting that his achievements continue to project Ogbomosho positively on the national stage.

    According to him, Adedeji’s rise in public service is anchored on competence, discipline and integrity, the qualities, he said, are deeply rooted in the values of Ogbomosho people.

    He said Adedeji has not only distinguished himself professionally, but has also become a symbol of hope and inspiration to the younger generation. He has made Ogbomosoland proud.”

    Adegoke commended the NRS boss for his commitment to national development and prudent management of public resources, adding that his leadership has strengthened confidence in the country’s revenue system.

    He prayed for good health, renewed strength and greater accomplishments for Adedeji as he marks another year, expressing confidence that he will continue to render impactful service to Nigeria and remain a rallying point for progress in his hometown.

  • FG accredits Pillarcraft as NRS System Integrator

    FG accredits Pillarcraft as NRS System Integrator

    The Federal Government has accredited Pillarcraft Cloud Solutions as a System Integrator for Nigeria’s e-Invoicing framework under the ongoing tax reform initiative.

    This is designed to strengthen digital tax administration and support structured reporting by businesses.

    The accreditation was granted by the Nigeria Revenue Service (NRS) in collaboration with the National Information Technology Development Agency (NITDA).

    In a statement in Abuja, the company explained that its approval places it within the category of service providers authorised to connect corporate business systems to the NRS e-invoicing platform under the Merchant Buyer framework.

    According to Pillarcraft: “In the NRS e-invoicing (Merchant Buyer) framework introduced by the Nigeria Revenue Service (formerly FIRS), a System Integrator is a licensed service provider responsible for connecting taxpayers’ business systems — such as ERP, accounting, or invoicing software — to the NRS e-invoicing platform.”

    Under the framework, the System Integrator is required to ensure that invoices generated within a taxpayer’s business environment are converted into the prescribed NRS e-invoice format with all mandatory data fields, transmitted securely through licensed Access Point Providers, and returned as validated e-invoices for compliance, reporting, and audit purposes.

    Pillarcraft said it developed a dedicated middleware to support this function, describing it as a technical bridge between business systems and the NRS platform.

    The company likened the solution to a decoder that converts broadcast signals into a display format, noting that the technology was engineered to deliver seamless, accurate, and scalable e-invoicing integration for organisations.

    As part of the accreditation milestone, the firm also announced the launch of UsawaConnect™, a purpose-built B2B e-invoicing middleware designed to connect enterprise resource planning systems, accounting software, and invoicing platforms to the NRS Merchant Buyer Platform. The company disclosed that the solution is now available to the public through its dedicated portal.

    Pillarcraft stated that the accreditation places it among a limited number of firms authorised to support businesses seeking structured alignment with Nigeria’s national digital tax infrastructure. 

    It further said the approval validates its technical competence and operational capacity to function within the e-invoicing ecosystem as a trusted integration partner for enterprises transmitting compliant electronic invoices and maintaining audit-ready records.

    The firm noted that UsawaConnect™ was engineered as a secure integration layer capable of transmitting validated invoice data, maintaining structured logs for audit review, and enabling organisations to comply with e-invoicing rules without replacing their existing software tools. 

    It added that the platform caters to SMEs, large corporations, accounting firms, and software vendors seeking a reliable pathway to digital compliance.

    Pillarcraft explained that the middleware draws from its long years of work at the intersection of tax, accounting, and technology, including experience as an implementation partner for global cloud solutions, the development of its Nigeria-focused Usawa Cloud Accounting Software, and more than two decades of professional tax practice.

    Founder of Pillarcraft, Bayode Agbi, said the e-invoicing framework represents more than a technology deployment, describing it as part of a deeper shift in how businesses manage records, governance structures, and tax obligations. “E-invoicing is not just a technology project; it is a tax and business transformation,” he said.

    He added: “Our accreditation as a System Integrator and the launch of UsawaConnect™ reflect years of practical experience working with Nigerian businesses, tax authorities, and enterprise systems. We built UsawaConnect™ to make compliance seamless, reliable, and scalable.”

    Agbi noted the company intends to deploy the platform to support organisations connecting to the NRS e-invoicing system, ensuring secure integration, minimal operational disruption, better audit preparedness, and the capacity to scale e-invoicing across multiple business units.

    Pillarcraft added its objective is to ensure that digital compliance functions as an efficiency driver for businesses rather than a procedural barrier, while contributing to the broader modernisation of Nigeria’s tax administration landscape.

  • NRS chair: Tax reforms will support sustainable growth

    NRS chair: Tax reforms will support sustainable growth

    • ‘Laws not targeted at opposition figures’

    The tax laws that took effect last week will support sustainable development and rapid economic growth, Executive Chairman of the Nigeria Revenue Service (NRS), formerly Federal Inland Revenue Service (FIRS), Dr. Zacch Adedeji, has said.

    Speaking on a national television yesterday, Adedeji explained that while tax reform often attracts political commentary, the overriding objective remains the stability of the economy and the development of credible institutions capable of supporting long-term national progress.

    He dismissed fears that the new tax reform framework could be used by the Federal Government to marginalise political opposition or target individuals based on political affiliation.

    Adedeji said the reforms were driven by national interest and institutional accountability.

    He responded to concerns that the new tax regime might be weaponised through selective enforcement or politically motivated scrutiny of tax compliance records.

    He noted that such insinuations were misdirected, stressing that the administration’s approach to tax reform is guided by transparency, due process and a commitment to building strong and credible institutions.

    Addressing a question on whether the reforms could be used to suppress opposition voices, Adedeji said: “We need to commend the courage of Mr. President, that even though there is an election coming, he is courageous enough to continue on this path of statesmanship, not of that of politicians.”

    He explained that it would have been easier politically for the government to avoid far-reaching fiscal and institutional reforms ahead of an election cycle, but the President chose to continue with measures aimed at strengthening the country’s fiscal foundation and improving economic governance.

    Read Also: Stransact, NRS collaborate on new tax law enlightenment

    According to him, the tax reform agenda is focused on correcting structural weaknesses in the system, improving fairness, and creating a simplified and predictable compliance environment that encourages voluntary participation rather than fear or coercion.

    Adedeji said the scepticism expressed in some quarters is influenced by Nigeria’s historical concerns about how public institutions have previously been perceived.

    He maintained that the new framework is being designed to reduce discretion in tax administration and ensure that processes are rule-based.

    He said the NRS was working to institutionalise systems that promote accountability, automation and stronger governance safeguards, so that tax administration is guided by law rather than individual judgment or political influence.

    The NRS Chairman added that the reform journey places strong emphasis on trust between government and taxpayers, noting that confidence grows when citizens are assured that tax policies are not shaped by partisan considerations.

    He said the administration’s approach is centred on expanding growth opportunities, sustainably strengthening public finances and creating a system where citizens can clearly see the relationship between taxes paid and improvements in public services.

    He said the ongoing implementation process will continue through structured phases, with the ultimate goal of building a tax environment that supports investment, protects vulnerable groups and strengthens confidence in public administration, while insulating tax processes from political interference.

  • Federation revenue rises to N3.6tr, says NRS chair

    Federation revenue rises to N3.6tr, says NRS chair

    • Monthly inflow up from N711 billion in May 2023
    • FIRS changes name to NRS

    Nigeria’s  monthly revenue collection  surged from N711 billion in May 2023 to N3.64 trillion last month, Chairman of the Nigerian Revenue Service(NRS), Zacch Adedeji , has said. 

    The Federal Inland Revenue Service (FIRS) has changed its name to NRS in line with the news Tax Law.

    Adedeji, at the Meet-the-Press series organised by the Presidential Communications Team in Abuja yesterday, also said that non-oil tax collections experienced the sharpest rise, hitting over  N1 trillion from N151 billion during the same period of 28 months.

    Oil revenue, according to him, increased considerably, with receipts rising from N96 billion to N644 billion.

    Value Added Tax (VAT) receipts more than tripled to N723 billion from N218 billion, while customs revenue surged to N322 billion from N106 billion.

    The Nigerian Upstream Petroleum Regulatory Commission, he said, reported remittances jumping to N745 billion from N125 billion. The  Nigerian National Petroleum Company Limited(NNPC Ltd) contributed N111 billion in September 2025.

    President Bola Ahmed Tinubu said last week that the country’s revenue projection for the year was surpassed at the end of August. But he did not provide the figures.

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    Adedeji attributed the revenue surge to the tax reforms initiated under President Tinubu’s administration.

    He said: “If you look at a NUPRC, which is royalty collection, you will see that it was N125 billion. In September, it is N745 billion. The increase is roughly 500, and that is the oil production increase that I mentioned…. I’m putting figures and why this one is important, most especially for us here, is for you to understand…. I will not say people should not be involved in politics or be political. For you (reporters),  it is your duty to actually educate people to know that we are here, just a little bit more than two years, and the decision that we’ve taken is right, this is the result.

     “If you look at oil, which is taxed, you see the increase. But when you look at the total accruals  to Federation as of  May 2023, it’s N711 billion. That is what we met. As of August, you will see that the total accrual is N3.6 trillion. That is an increase of 411 per cent, which is just a result of the economic reform decisions that Mr President has taken.”

    Borrowing integral to a viable economy

    He  described critics of government borrowings as “container economists.” 

    He said it was essential for such individuals to understand that borrowing is an integral part of a viable economy.

     Adedeji said that “container economists” often download unverified claims from social media and raise alarms about Nigeria’s debt profile.

    “As much as they fight me, sometimes you ask if they even understand the right questions, or are just downloading WhatsApp messages,” the NRS boss added.

    He explained that borrowing, when responsibly managed, sustains growth, boosts infrastructure financing and stabilises an economy.

    “Borrowing is not a problem. There is no country or individual in the world that survives based only on income. Borrowing is part of the budget we submit and what is approved by the National Assembly. It is part of the ecosystem of a viable nation,” Adedeji said.

    The  NRS boss advised that borrowings by the government  should not be misconstrued as a sign of fiscal weakness, but   a deliberate strategy to match long-term investments with   revenue flows.

    He illustrated his suggestion with the example of road construction.   “When you borrow to build roads, those who use them in future will pay their fair share through taxes. You don’t need to spend your entire lifetime’s resources on infrastructure that will outlive you. That is why borrowing exists.”

    On the controversial   Ways and Means advances from the Central Bank of Nigeria(CBN), Adedeji clarified that the Tinubu administration had taken steps to end the practice of printing money without backing.

    He said: “We have stopped Ways and Means. The whole loan has been collateralised and recognised in the Federal Government’s books as debt.

    ‘’We are paying both principal and interest, and that is why there is stability in the system and no pressure on the exchange rate.” 

    On  recent fiscal reforms, Adedeji reiterated  that only two components of the newly enacted tax laws—specifically the Tax Act and Tax Administration Act—will commence on January 1, 2026, in line with the federal fiscal year cycle.

    “Company Income Tax is assessed on a preceding year basis, meaning profits made this year are taxed next year. That is why it is logical and strategic to commence in January. The President is a planner, and that is why he insisted commencement should align with the fiscal year,” he said.

    However, Adedeji said that administrative changes, including the renaming of the  Federal Inland Revenue Service (FIRS) to the  NRS, took immediate effect. 

    He restated  that the  ongoing reforms will harmonise subnational levies, reduce corporate tax rates, and expand the tax net as part of broader fiscal and constitutional reforms.

    “Our aim is not just to raise revenue, but to build a fair, efficient, and sustainable system that supports growth and gives confidence to investors,” Adedeji explained.

    14 major banks fully recapitalised

    Cardoso also announced that 14 banks have fully met the new capital requirement in the ongoing recapitalisation exercise.

    The apex bank introduced a new minimum capital base requirement for banks, with tiers depending on licence type.

    Before then, the last major bank recapitalisation was in 2004, when the CBN raised the minimum capital requirement for all banks from N2 billion to N25 billion.

    The significant increase led to a major consolidation in the banking sector, as it reduced the number of banks from 89 to 25 through a series of mergers and acquisitions.

    In the current recapitalisation exercise, commercial banks with international authorisation now have a new capital requirement of N500 billion.

    Commercial banks with national authorisation have N200 billion as capital requirement, and commercial banks with regional authorisation have N50 billion.

    Merchant banks have a requirementof N50 billion, non-interest banks (national) N20 billion and non-interest banks (regional), N10 billion.

    According to Cardoso, members of the MPC acknowledged the significant progress in the bank recapitalisation exercise, as 14 banks have fully met the new capital requirement.

    “They, therefore, urged the CBN to continue the implementation of policies and initiatives that would ensure the successful completion of the ongoing recapitalisation,” the CBN chief said.

  • Stransact, NRS collaborate on new tax law enlightenment

    Stransact, NRS collaborate on new tax law enlightenment

    A firm of chartered accountants, Stransact Chartered Accountants, in collaboration with Nigeria Revenue Service (NRS), yesterday held a seminar to enlighten corporate taxpayers and business owners on how to navigate the country’s new tax landscape.

    Speakers at the a one-day seminar/workshop for corporate taxpayers and business owners, which held in Lagos, explored the 2025 Tax Reform Act, looking at key changes and implications. The seminar had as its theme: “Navigating Nigeria’s New Tax Landscape: Understanding the 2025 Tax Reform Acts and Mandatory E-Invoicing for Taxpayers.”

    While the effective date of the Tax Laws is set for January 1, 2026, participants at the event said that seminar/workshop like that offered opportunity for participants to look at key changes and implications.

    “The event opened my eyes to reliefs that come with the new tax laws, as HR manager, I have learnt of the rent relief, some on mortgages and I can sensitise my colleagues on them and they can earn more when the law comes into effect,” said a Human Resource specialist at Lekoil, Ifeanyi Ndukwe.

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    Also at the event, three-session panelists discussed: Mandatory E-Invoicing: Understanding the FIRS Electronic Fiscal System (EFS) and Merchant Buyer Solution (FIRSMBS); 2025 Tax Reform Act: Navigating Compliance Challenges and Future Outlook; and Practical Aspects of E-Invoicing Compliance: Integration, Data, Requirements, and Transaction Models.

    One of the panelists’ sessions, they noted that the 30 percent fund required by the new tax law to be deposited in a Nigerian bank escrow account is no additional cost for oil and gas companies, but to ensure the funds are kept.

    “The extra cost is just a misconception in my own opinion, the new law is to ensure that 30 percent of the fund is kept with a Nigeria bank which can develop our country,” Gabriel Ogunjemilusi, former FIRS director.

    He explained that the 30 per cent is from existing funds mostly kept in foreign escrow accounts by the companies.

    Under the new tax law, decommissioning/abandonment costs are deductible only if at least 30 percent of the fund is deposited in escrow with an accredited Nigerian bank.

    In the Petroleum Industry Act 2021, the establishment of a Decommissioning Fund was enacted.

    Operators are obligated to establish a dedicated Decommissioning and Abandonment Fund with an independent financial institution. The purpose of this fund is to ensure that sufficient resources are available exclusively for decommissioning activities in Nigeria.

    “It was assumed that they could take it offshore. So, all of them then that way the law is given making them make provision and take the money offshore and keep it in other countries’ banking sectors,” Ogunjemilusi said.

    As Nigeria currently experiences a wave of divestments by international oil companies (IOCs), an increased attention is being directed towards the decommissioning of ageing infrastructure.

    “The PIA already provided that it should be funded, but by insisting on Nigerian banks, you are able to trace if it’s actually been funded. And in practice, many Nigerian players who are now predominant are struggling to fund it,” Kehinde Kajesumo, deputy director, head treaties & international tax policy, FIRS said.

    Kajesumo explained that the law is to ensure the security of the environment of oil production, and also to ensure that the money will be available when it is needed in the future.

    Also, discussions on the rent relief of 20 percent of annual rent paid, subject to a maximum of N500,000 sparked questions on who gets it between married couples who pay rent together.

    Kajesumo said that the FIRS will provide more clarity on the rent relief provision, including how it applies when couples jointly pay rent.