The Nigerian government has officially begun enforcing the 2024 Withholding Tax Regulations.
According to Sources, the implementation of tax deductions at the source commenced on Wednesday, January 1, 2025.
Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, announced the launch in a statement shared via his official X account on Wednesday.
He clarified that Small and Medium Enterprises (SMEs) and manufacturers are exempt from the new tax provisions. Oyedele described the regulations as a measure aimed at reducing administrative burdens and financial pressures, promoting growth and innovation within these sectors.
“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.
It is worth noting that President Bola Ahmed Tinubu approved the Withholding Tax Regulations in July 2024, with their publication in the Official Gazette following in October. The updated rules are now fully operational.
This implementation comes amidst debates surrounding President Tinubu’s four proposed tax reform bills currently under review by the National Assembly. The reforms have faced significant opposition from Northern governors and other leaders, despite the President’s insistence on their necessity.