Foreign exchange transactions conducted outside Nigeria’s official FX window will soon incur excise tax penalties.
This is one of the 20 recommendations put forward by the Presidential Fiscal Policy and Tax Reform Committee, established by President Bola Ahmed Tinubu to evaluate and provide guidance on reforms aimed at shaping Nigeria’s fiscal policy and tax system.
Announcing this development on X, formerly known as Twitter, Taiwo Oyedele, the committee’s Chairman, indicated that the committee’s “quick win” recommendations, designed to address pressing economic issues including exchange rate management, the impact of fuel subsidy removal, inflation control, and economic growth facilitation, include the imposition of excise tax on foreign exchange transactions conducted outside the official market.
This tax on FX transactions beyond the official market is expected to be implemented within 30 days as part of the initial “Quick Wins” phase.
The committee’s work is divided into three phases, with the subsequent two phases, the critical reforms and implementation stages, to be executed within six months and a year, respectively.
