The Federal Inland Revenue Service (FIRS) has announced the immediate discontinuation of all tax exemption certificates, affecting pioneer status companies, non-governmental organisations (NGOs), and businesses operating in free trade zones.
In a public notice released by the agency, the FIRS stated that the issuance of new Tax Exemption Certificates has been suspended indefinitely, as part of a broader effort to promote transparency and ensure strict adherence to Nigeria’s tax laws.
“The issuance of Tax Exemption Certificates has been discontinued. Consequently, no further Tax Exemption Certificates will be issued,” the statement read.
The agency, however, clarified that existing certificates will remain valid until their expiration dates, but no renewals will be granted thereafter.
The FIRS also emphasized that all future claims for tax exemptions or benefits must strictly comply with legal provisions and procedural guidelines. It warned that any attempt to forge, alter, or misrepresent exemption statuses would be met with severe penalties in line with Nigerian law.
“FIRS remains committed to building a fair and transparent tax system and calls on all affected stakeholders to align with revised procedures and legal obligations,” the notice added.
This announcement follows recent remarks by FIRS Executive Chairman, Zacch Adedeji, who lamented on July 22 that Nigeria loses billions annually due to aggressive tax avoidance by multinationals, resulting in poor funding for infrastructure and public services, and widening inequality.
The now-discontinued exemption regime was originally designed to encourage investment in strategic sectors such as exports and long-gestation industries, but it is believed to have been riddled with abuse.
Authorities have hinted that a comprehensive review of the tax incentive framework will be undertaken before any future exemptions are considered for reintroduction.
For inquiries on the new directive, the FIRS has advised stakeholders to contact the Executive Chairman’s office directly.
