The Lead Story
Treasury Bills Take a 10% Haircut
The Big Picture: Nigeria’s Federal Inland Revenue Service (FIRS) just yanked the “tax-free” label off short-term securities. In a fresh circular, the agency ordered banks, brokers, and every other interest-payer to withhold 10 percent on the interest you earn from treasury bills, commercial papers, promissory notes,pretty much any debt instrument maturing in under a year.
The Details: The directive, issued Tuesday, requires the levy to be sliced “at the point of payment,” BusinessDay reports. Investors will still get a tax credit (unless the 10% is deemed final), but the change kills a long-standing perk designed to juice demand for government paper. Interest on federal government bonds keeps its exemption, FIRS clarified. Executive Chairman Zacch Adedeji warned that non-compliance will trigger statutory penalties.
Why It Matters / What They’re Saying: Yield-hungry investors have flocked to T-bills for quick, high-rate returns. “This move could thin out demand next auction,” one Lagos dealer told BusinessDay. Tax pros are also flagging bookkeeping headaches as custodians scramble to re-code their systems before the next coupon date.
Around the Tax World
- Judges Hit the Books: At a National Judicial Institute workshop, Adedeji praised the judiciary’s “sound pronouncements” and pushed for faster rulings on tax disputes (Punch).
- VAT Meets AI: OpenAI’s paid ChatGPT plans will attract Nigeria’s 7.5% VAT from 1 November, bumping a ₦31,500 monthly fee to roughly ₦33,862.50 (Pulse).
- SME Survival Guide: A new 2026 handbook lays out how small firms can exploit the three-tier Company Income Tax rates,0%, 20%, 30%,under 2025 reforms (Business Post).