FIRS Imposes 10% Withholding Tax on Short-Term Investments in Nigeria

The Federal Inland Revenue Service (FIRS) in Nigeria has introduced a 10% withholding tax on interest earned from short-term securities, excluding federal government bonds. The new rule applies to various instruments like treasury bills, corporate bonds, and promissory notes.

Investors will receive tax credits for the amount withheld, with FIRS emphasizing compliance to avoid penalties. FIRS Chairman Zacch Adedeji highlighted the importance of adherence to the new tax measure, impacting market participants and financial institutions.