Nigeria: Taxation of institutions offering non-interest financial products and services in Nigeria

Regulations provide tax and regulatory framework for the operation of non-interest financial instruments

Taxation of institutions

The Federal Inland Revenue Service (FIRS) published regulations that provide a framework for the taxation of financial institutions offering non-interest financial products and services in Nigeria. The Non-Interest Finance (Taxation) Regulations 2022 were effective as of 1 April 2022.

The Central Bank of Nigeria in June 2022 issued revised guidelines for the operation of non-financial instruments to provide a uniform set of rules for authorised institutions to access non-interest financial instruments.

Therefore, the regulations provide tax and regulatory framework for the operation of non-interest financial instruments offered by the Central Bank of Nigeria for authorised institutions operating under the principles of Islamic Commercial Jurisprudence for equal treatment of both conventional and non-interest financial services transactions in Nigeria.

The regulations are divided into seven parts and address 12 different non-interest financial instruments provided by authorised institutions and their tax implications.

Read a November 2022 report [PDF 4.3 MB] prepared by the KPMG member firm in Nigeria

 

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.