Hauwa Obi got a promotion! She also received a pay raise in September 2020. Based on her understanding of Nigeria payroll, she was able to estimate her net salary after deducting statutory contributions. She was, however, surprised to receive a lower net salary in her bank account in June 2021. The net salary and deductions…
Oil and gas companies operating under production sharing contracts (PSCs) in the Deep Offshore and Inland Basin are governed by the Deep Offshore and Inland Basin Production Sharing Contract (DOIBPSC) Act, Cap D3 LFN 2004. The Nigerian Senate has now passed a bill to amend the DOIBPSC Act 2004. The DOIBPSC (Amendment) Bill 2019 aims to…
The income of a person or company will be liable to tax in Nigeria based on residence. A local business that generates all its profits in the country is, thus, a tax resident in Nigeria. Yet, foreign individuals and companies outside Nigeria also derive income or profits from Nigeria. Will this category of taxpayer be…
The Federal Government of Nigeria wants to introduce excise duty on carbonated drinks such as soft drinks and beverages that contain carbonated water. Excise duty is a charge on the production, sale or use of certain locally produced goods. The principal act for excise duties in Nigeria is the Customs and Excise Management Act (CEMA). Carbonated drinks…
On October 8, 2019, President Muhammadu Buhari presented the 2020 Budget and Finance Bill to the National Assembly for consideration and passage into law. The total revenue available to fund the 2020 budget is projected at ₦8.155 trillion (7% higher than the 2019 Budget of ₦7.59 trillion). Meanwhile, the aggregate expenditure is ₦10.33 trillion, leading…
The Nigerian Senate has proposed a Communication Service Tax Bill (2019) as extra revenue for the national budget. Communication service tax (CST) is a charge of 9% on electronic communication services such as voice calls, SMS, MMS, pay per view TV stations and data usage from telecommunication service providers and internet service providers. As a…
Education, as a way of learning, helps to inculcate the proper attitudes and social interaction on people. Tertiary education can be defined as learning acquired after the secondary (or high) school level. Post secondary school level includes certificates from polytechnics, colleges of education, or universities. While education facilitates development, tertiary education enhances the ability of…
The Lagos State Internal Revenue Service (LIRS) has automated its tax management and administration process. Taxpayers in Lagos State can now manage their tax affairs using an online end-to-end platform, enterprise tax administration system (e-Tax). Overall, the multi-channel solution aims to improve tax administration and shorten the tax compliance process in the state. e-Tax serves…
Nigeria’s Federal Inland Revenue Service (FIRS) has issued a regulation on the automatic exchange of information with 112 countries (2022) on financial accounts. The co-operation of tax authorities in different countries will help to reduce tax evasion and enhance the reliability of tax systems. Otherwise, a person may refuse to comply with local tax obligations and…
One of the main challenge facing the Nigeria Police is funding. President Muhammadu Buhari recently signed a new Act that creates additional source of revenue for the Nigeria Police. The Nigeria Police Trust Fund (Establishment) Act, 2019 aims to create a special intervention fund for the training of the Nigeria Police personnel, provision of equipment,…