Nigeria Reaffirms No Inheritance Tax in New Bills; Tax Reforms Addressed

Nigeria's Presidential Committee on Fiscal Policy and Tax Reforms, led by Taiwo Oyedele, has confirmed that inheritance tax will not be reintroduced in the new tax bills. Oyedele clarified that Section 4 subsection 3 of the Nigerian tax bill, often misinterpreted as introducing inheritance tax, actually pertains to family income derived from renting out properties. He emphasized that this provision has been in place since independence and is not related to inheritance, which concerns assets, wealth, and cash. Oyedele also addressed concerns about free zones, stating that there is no law permitting free zone entities to sell to custom territories in competition with tax-paying businesses. Federal Inland Revenue Service (FIRS) Chairman, Zach Adedeji, criticized investors attempting to exploit the free zone system to the detriment of businesses within custom areas. President of the Manufacturers Association of Nigeria (MAN), Francis Meshioye, expressed concern over the exclusion of tax waivers on profits from manufactured exports, noting a decline in manufactured exports between 2019 and 2023. The Oil Producers Trade Section raised concerns about potential VAT losses for the oil and gas sector and advocated for the codification of oil production incentives under the proposed tax reform.