The Federal Inland Revenue Service (FIRS) has introduced a 10% Withholding Tax (WHT) on interest earned from short-term investments such as treasury bills, promissory notes, and corporate bonds which applies to both individual and corporate investors. Effective from October 28, 2025, financial institutions must deduct this tax at the point of interest payment and remit it to FIRS by the 21st of the following month. This move reflects FIRS’s ongoing efforts to broaden Nigeria’s non-oil revenue base and align tax policy with current investment trends.
FIRS IMPOSES 10% WITHHOLDING TAX ON INTEREST FROM SHORT-TERM INSTRUMENTS
