Nigeria: Guidance on withholding tax on interest from short-term securities; duty-free threshold for low-value imports; tax administration reform

Recent tax developments in Nigeria

The Federal Inland Revenue Service (FIRS) issued a public notice directing financial entities to deduct tax on interest from short-term securities (possibly including government bonds, treasury bills, promissory notes, corporate bonds, financial papers, and bills of exchange) on the payment date, remitting it by the 21st of the following month. The notice specifies that interest on federal government-issued bonds remains exempt, and recipients receive a tax credit for non-final deductions.

The Nigeria Customs Service (NCS) on September 8, 2025, announced that imported goods valued at U.S. $300 or less will qualify for duty-free clearance. The exemption applies to low-value imports, e-commerce consignments, and passenger baggage, with a limit of four importations per year per individual.

Finally, the government on June 26, 2025, published in the official gazette four new tax reform laws that seek to enhance the tax framework and administration in Nigeria: the Nigeria Tax Act, 2025; the Nigeria Tax Administration Act, 2025; the Nigeria Revenue Service (Establishment) Act, 2025; and the Joint Revenue Board (Establishment) Act, 2025.

For more information, contact a KPMG tax professional in Nigeria:

Olufemi Babem| olufemi.babem@ng.kpmg.com

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Nigeria: Guidance on withholding tax on interest from short-term securities; duty-free threshold for low-value imports; tax administration reform

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