The Federal Government of Nigeria has commenced the implementation of the 2024 Withholding Tax Regulations, effective January 1, 2025.
The updated regulation is designed to streamline compliance processes, reduce inefficiencies, and ease administrative burdens for businesses.
These changes are particularly aimed at Small and Medium Enterprises, manufacturers, producers, and farmers – sectors considered vital to Nigeria’s economic stability and growth.
The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, said on his X (formerly Twitter) account stated thus:
“As part of the ongoing fiscal policy and tax reforms, the 2024 Withholding Tax Regulations, which was approved in July 2024 and published in the Official Gazette in October 2024, take effect today 1 January 2025.”
The new regulations exempt manufacturers, producers, and farmers from withholding tax obligations, a measure aimed at strengthening these critical sectors to ensure their sustainability and long-term growth.