The Federal Inland Revenue Service (FIRS) has notified taxpayers that the new withholding tax (WHT) regime will take effect from the 1st of January 2025.

In a notice signed by Zacch Adedeji, the Executive Chairman of the FIRS, the service noted that the current withholding tax regime as provided in the Company Income Tax (CIT) regulation would continue to remain in force until December 25th 2024.

It further encouraged citizens to comply with regulations with respect to tax payments

The notice reads, “The Federal Inland Revenue Service (“the Service”) hereby notifies taxpayers, tax practitioners, and the general public as follows: 

1. The Deduction of Tax at Source Withholding (WHT) Regulations, 2024 published in the Federal Government Gazette takes effect from 1st January 2025.
2. The current WHT regime as enshrined in the Companies Income Tax (Rates, ETC, of Taxes Deducted at Source (Withholding Tax) Regulations (S.I.10 of 1997) and relevant WHT provisions remains in force up to and until 31st December 2024.” 

Yesterday, the Federal government officially announced the new withholding tax regulation titled; The Deduction of Tax at Source (Withholding) Regulations, 2024. The new withholding tax regime seeks to repeal major provisions of the former withholding tax regulation which was approved as far back as 1978.

The Chairman of the Presidential Committee on fiscal policy and tax reforms had earlier in June stated that the federal government had approved a new withholding tax regime for the country awaiting official gazette.

The earlier withholding tax system, established in 1978, faced challenges such as ambiguity due to the expanded scope of transactions, leading to an increase in the number of taxes, inequities in the system, and strain on the working capital of low-margin businesses.

Customers of Zenith Bank staged a protest in front of the bank gate located around the popular wuse market.

More than 48 hours after the bank announced routine IT maintenance many of their customers are still unable to carry access their money or carry internet banking both via the bank app, POS or USSD

This is contrary to the promise by the bank that online transactions would resume after 2.30 pm on Tuesday, October 1, 2024, as of 10am on thursday, customers of the bank are still unable to perform any transaction using their app or do any online transaction.

Many of the bank’s customers have also taken to X to express their frustration as the service downtime continues without any hope of restoration in sight.

@IamTheIroko wrote “You can’t transfer to Zenith Bank and from Zenith Bank. You can’t access internet banking; app opens but you can’t even check history? For 3 days now. I mean come on”

 Another @hypmasta_F1G “wrote Yesterday night I managed to open my app make I try buy goods atleast na so them debit me, money no reach the person. This people just want spoil business for this economy way we the manage, since on Monday I have been seriously stressed by zenith bank, goods I nofit buy money way customers send since on the 1st I no see. If e Dey my power walahi i for don sue those people cause they don make me lose money nobi small. I just the para”

On Wednesday, Folashodun Shonubi, a former acting Governor of the Central Bank of Nigeria, told Justice Maryann Anenih of the Federal Capital Territory High Court in Maitama, Abuja, that intrigues and politics were involved in the 2022 naira redesign effort.

Shonubi, who was the Deputy Governor of Operations before being appointed as acting CBN Governor and is now retired, testified in court as a witness in the trial of former CBN Governor Godwin Emefiele.

He alleged that the new naira notes produced by the CBN under Emefiele differed from what former President Muhammadu Buhari approved.

In response to queries from Emefiele’s lawyer, Olalekan Ojo (SAN), Shonubi indicated the late 2022 naira redesign exercise, ahead of the 2023 general elections, was plagued with politics.

“The currency redesign of 2022 was the only one I was part of. When we had meetings with the defendant (Emefiele), he said there were politics and intrigues around the whole exercise,” Shonubi stated.

However, he did not dwell on the intrigues and politics involved.

When asked if there was presidential consent for the naira redesign, the witness stated that Emefiele submitted a paper including the President’s signature at one of the CBN’s Committee of Governors meetings.

He also claimed that the redesigned naira notes created by the CBN under Emefiele did not match those approved by the President.

“The CBN, under Emefiele, produced something different from what former President Muhammadu Buhari approved,” he stated.

Shonubi stated that he had not seen any letters from the Committee of Governors or the CBN board objecting or rejecting the President’s acceptance of the currency makeover.

When asked if he knew all that happened between President Buhari and Emefiele during the naira redesign, he said no.

He added that Emefiele was the only one who spoke with the President about the situation.

Shonubi also revealed that he was summoned by the Economic and Financial Crimes Commission in connection with the redesign case and gave testimony to the commission.

However, he stated that the EFCC did not undertake a face-to-face confrontation between him and Emefiele on Emefiele’s statements.

The witness went on to say that Emefiele drafted the letter for the currency redesign and forwarded it to the President without following the CBN’s protocols.

He explained that under regular protocols, the CBN’s Currency Management Department must provide a recommendation for the redesign.

“After that, a proposal would be submitted to the Committee of Governors for consideration. Upon the COG’s approval, the matter would be forwarded to the CBN Board, which, in turn, would make a recommendation to the President. After receiving the President’s approval, the bank would then set up an internal committee to execute the currency redesign exercise,” Shonubi explained.

Shonubi, the apex bank’s Deputy Governor, claimed he served on both the COG and the CBN Boards.

He claimed Emefiele ignored the Currency Department’s early 2021 request for a naira redesign.

“While serving as Deputy Governor, there was a time when the naira was redesigned — that was in 2022. The CBN did not follow the procedures for redesigning the currency. I was a member of the CBN Board as Deputy Governor, and the Chairman of both the COG and Board was the Governor.

“Prior to 2022, in early 2021, the Currency Department recommended the redesign of the currency notes. A paper was presented to me, but on the instruction of the Governor (CBN), it was stepped down. In 2022, we again presented the paper and were asked to hold on,” Shonubi explained.

“In mid-October 2022, the Deputy Governors of the bank were invited to a meeting in the Governor’s office, where he informed us that he had received presidential approval for the currency redesign.

“He showed us the memo, Mr. President’s signature, and the instructions on the last page,” Shonubi added.

Following his testimony, the court adjourned the case until October 9 for further hearing.