• Login
  • Register
Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
Nairametrics
No Result
View All Result
Home Business News Business

What tax experts are saying about FIRS 1-month window for taxpayers to settle foreign currency tax liabilities

The concession is accessible to all taxpayers with foreign currency liabilities due on or before December 31, 2021

Ubah Jeremiah Ifeanyi by Ubah Jeremiah Ifeanyi
March 9, 2022
in Business
Tax collection: FIRS vows to surpass N10.1 trillion in 2023 by leveraging technology
Share on FacebookShare on TwitterShare on Linkedin

Because it is difficult to get dollars, Nigeria has allowed enterprises with outstanding foreign currency tax bills to pay in Naira, giving the organizations the chance to pay cheaper taxes.

The debtors have been granted a one-month deadline by the Federal Inland Revenue Service to settle in local currency.

This was disclosed in a statement titled, “Payment of Outstanding Foreign Currency Tax Liabilities in Naira”, signed by the Executive Chairman of the FIRS, Muhammad Nami.

RelatedStories

FIRS, Tax

FIRS extends tax office operations to weekends in June 2025 

June 17, 2025
Oyo State IGR performance hits N65.2 billion in 2024 – FIRS 

Oyo State IGR performance hits N65.2 billion in 2024 – FIRS 

May 26, 2025
  • Due to the foreign exchange differential, this might be a game-changer and a big incentive for businesses to repay their tax burden by paying lower taxes.
  • Nigerian authorities require companies to pay tax in the currency of the transaction. At the expiration of the one-month window, the tax agency “would no longer entertain any such requests” to settle the obligations in naira, it said.
  • According to the FIRS, the concession is accessible to all taxpayers with foreign currency liabilities due on or before December 31, 2021, with the exception of enterprises in the upstream oil and gas sector. The naira payment would be based on the official exchange rate on the transaction date and/or when the tax is payable, according to the statement.

What this means

  • The FIRS stated that the applicable rate shall be the Investors and Exporters (I&E) The official foreign exchange rate of the Central Bank of Nigeria (CBN).
  • The exchange rate at the I&E window fell on Friday to close at N416.67/$1, while the exchange rate at the parallel market is trading around at N580/$1.
  • Since payment of outstanding foreign currency tax liabilities to pay in Naira, the companies have a chance to pay cheaper taxes due to the difference in the exchange rate market.
  • For example, if a foreign company was owing $1 million in taxes, it is would only have to pay N416,670,000. Instead of paying N580,000,000.
  • This change in policy would save the company about N163 million that could be used for other activities.

What experts are saying 

The new strategy, according to Pascal Nkwodimmah, Financial Manager at Opera NG, is significantly needed due to the severe scarcity of dollars to pay taxes.

“Due to the paucity of dollars, we’ve been having trouble paying our dollar taxes. This is a dilemma for businesses and governments, and the move to solve these concerns is welcomed.” 

The only corporations that would benefit from the new legislation, he claims, are those who have a dollar surplus.

“Because of the paucity of dollars to meet tax responsibilities, I believe that only enterprises with excess dollar reserves would benefit financially from this decision, while others with less than ideal surplus will see it as a lifeline.”

Nkwodimmah also stated he would be more comfortable to have the one month limit extended.

“Until the dollar scarcity problem is resolved this policy should be maintained in my view,” he added.


Follow us for Breaking News and Market Intelligence.
Tags: Federal Inland Revenue Servicefirsforeign currency tax billsMuhammad Nami
Ubah Jeremiah Ifeanyi

Ubah Jeremiah Ifeanyi

For further inquiries about this article, contact: Email: Ifeanyi.ubah@nairametrics.com Twitter: @ubahjc Linkedln: Jeremiah Ubah

Related Posts

FIRS, Tax
Economy

FIRS extends tax office operations to weekends in June 2025 

June 17, 2025
Oyo State IGR performance hits N65.2 billion in 2024 – FIRS 
Economy

Oyo State IGR performance hits N65.2 billion in 2024 – FIRS 

May 26, 2025
FIRS, Tax
Legal & Regulations

FIRS seeks court’s dismissal of Binance’s application to vacate ex-parte order amid $79.5 billion tax lawsuit 

April 30, 2025
FIRS plans to increase tax revenue by 57% to N19.4 trillion in 2024 
Economy

FIRS directs banks to close unauthorised tax collection accounts 

April 29, 2025
Lawyers are divided over legitimacy of labour’s minimum wage strike that has resulted in a nationwide blackout
Exclusives

SANs provide insights into how FG should handle tax-related disputes with Multinationals in Nigeria 

April 17, 2025
Binance
Cryptos

BINANCE: Court admits FIRS documents allegedly confirming cryptocurrency platform’s financial transactions in Nigeria

April 13, 2025
Next Post
IWD22: Women in tech advocate gig economy to breaking bias

IWD22: Women in tech advocate gig economy to breaking bias

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Emple
nlng
first bank








DUNS

Recent News

  • Sola Sobowale unveils Ilu Aseyori, Africa’s Premier Agro Smart City, where Nigerians can now own profitable Oil palm plantations 
  • LASEPA shuts Mania Lounge, Voda Beach Club, and others for persistent noise pollution 
  • President Tinubu to remove bottlenecks hindering livestock production export between Nigeria and Brazil  

Follow us on social media:

Recent News

Sola Sobowale unveils Ilu Aseyori, Africa’s Premier Agro Smart City, where Nigerians can now own profitable Oil palm plantations 

Sola Sobowale unveils Ilu Aseyori, Africa’s Premier Agro Smart City, where Nigerians can now own profitable Oil palm plantations 

July 6, 2025
Lagos govt mandates permits for amplified sound in nightclubs, worship centres 

LASEPA shuts Mania Lounge, Voda Beach Club, and others for persistent noise pollution 

July 6, 2025
  • iOS App
  • Android App
  • Contact Us
  • Home
  • Markets
  • Sectors
  • Economy
  • Business News
  • Financial Literacy
  • Disclaimer
  • Ads Disclaimer
  • Copyright Infringement

© 2025 Nairametrics

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Social Media Auto Publish Powered By : XYZScripts.com
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Login
  • Sign Up

© 2025 Nairametrics