5 Key Things To Note About 2022 Finance Bill Passed By Nigeria’s National Assembly

• The 2022 Finance Bill is expected to be signed into law by President Buhari before the end of the year
• The 2022 Finance Bill proposes that the FIRS should now be known as Nigeria Revenue Service
• The 2022 Finance Bill also seeks an increase to Tertiary Education Tax

On December 28, 2022, the Nigerian Senate and House of Representatives passed the 2022 Finance Bill.

The Nigerian Senate had earlier invited stakeholders to a public hearing on Thursday, December 22, 2022, while the House of Representatives had its own public hearing on Friday, January 13, 2023.

The 2022 finance bill is expected to be harmonised by both houses and then sent to the President for assent which is expected to happen on or before 31st December 2022.

Below are 5 key changes in the version of the bill passed by the Houses:

• An increase in Tertiary Education Tax (TET) rate from 2.5% to 3%. This in effect increases the expected tax rate to about 36% and is said to be one of teh highest in the world. It should be recalled that this rate was just recently increased from 2% to 2.5% in the 2021 Finance Act.
• An amendment for a name change of Nigeria’s tax revenue collection agency, the FIRS. The amendment now suggests that the agency should be called Nigeria Revenue Service and for the Board from the Service and the Service to be headed by a Commissioner General.
• That the proposed taxation of Gaming and Lottery businesses under the CITA should be deleted.
• The bill proposes a maximum of 5 years for capital losses deductible for CGT purposes to be carried forward for a maximum of 5 years.
• Proposed 50% Investment Tax Credit for investment in gas utilisation changed to investment allowance of 10% and 5% per annum for non-associated and associated gas respectively and this is subject to the attainment of a cumulative production of 300 billion cubic feet.
• Companies engaged in upstream and midstream gas operations as well as Agro-Allied businesses and manufacturing companies to be exempted from the annual restriction of capital allowance utilisation to 2/3rd of their assessable profits.