The Federal Executive Council (FEC) approved the N2.3 trillion stimulus package (1.6% of GDP) proposed by the Economic Sustainability Committee, designed to cushion the impact of the COVID-19 pandemic on Nigeria’s economy. The stimulus package includes the initially approved N500 billion (0.34% of GDP) intervention fund, which was approved by the President to support healthcare facilities, provide relief for taxpayers and incentivize employers to retain and recruit staff during the downturn.

 

Given the expected large fall in oil revenues, the government announced plans to cut/delay non-essential capital spending by N1.5 trillion (close to 1 percent of GDP).

 

A supplementary budget for 2021 (N896 billion) was submitted to Senate for its consideration. While the bulk of the proposed budget comprise security spending (N770.6 billion), it also includes significant amount of health-related expenditure (N125.2 billion) including for COVID-19 vaccine program (N37.9 billion). 

 

 

 

Interest and penalties due on outstanding tax debts have been waived. The waiver is applicable to taxpayers to the extent that such tax debts arise from: tax audit investigation and desk review assessments; approved instalment payment plans under the voluntary asset and income declaration scheme (VAIDS) that have not been fully complied with. On 7 July 2020, the Federal Inland Revenue Service (FIRS) again extended the waiver until 31 August 2020.

 

Import duty waivers for pharmaceutical firms were introduced. Regulated fuel prices have been reduced, and an automatic fuel price formula introduced to ensure fuel subsidies are eliminated.

 

 

Interest and penalties due on outstanding tax debts have been waived. The waiver is applicable to taxpayers to the extent that such tax debts arise from: Self-assessment filing; Tax audit investigation and desk review assessments; Approved instalment payment plans under VAIDS that have not been fully complied with. On 7 July 2020, FIRS again extended the waiver until 31 August 2020.

 

Waiver of Late Returns Penalty for taxpayers who settle their tax liabilities early but file the respective returns at a later date. The supporting documents for such payments can be sent via the designated email addresses of the relevant tax offices, or submitted physically at a later date for those that are unable to access the email facility.

 

Concession for taxpayers with transactions denominated in foreign currency (forex) to settle their tax liabilities in Naira where there are difficulties in sourcing forex to settle such liabilities.

 

 

Introduction of a user friendly e-filing process works as an alternative for physical visits to tax offices. As such, submission of tax returns can be done via the e-filing platform (for registered taxpayers) or through alternative platforms provided by the various FIRS tax offices.

 

(Updated: May 2022)