The Nigerian government has officially implemented the ‘2024 Withholding Tax Regulations,’ with the Deduction of Tax at Source taking effect on Wednesday, January 1, 2025.
Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, announced the commencement of the new regulation in a statement posted on his official X account.
He clarified that Small and Medium Enterprises (SMEs), as well as manufacturers, are exempt from the new tax rule. Oyedele described the regulation as a measure designed to ease administrative burdens and financial challenges, with the aim of promoting growth and innovation within the sector.
“As part of the ongoing fiscal policy and tax reforms, the 2024 Withholding Tax Regulations, which were approved in July 2024 and published in the Official Gazette in October 2024, take effect today, January 1, 2025,” he wrote.
In July 2024, President Bola Ahmed Tinubu approved the Withholding Tax Regulations, which were published in the Official Gazette in October. The revised regulations officially took effect on January 1, 2025.
This move comes amid ongoing controversy surrounding the four tax reform bills currently before the National Assembly. While President Tinubu remains steadfast in his support for the tax reforms, Northern governors and other leaders have openly opposed them.
