Tax & Business Matters - Nigeria

Nigeria's 2019 Budget - What you need to know!

The Nigerian President, Muhammadu Buhari, today 19 December 2018 presented the 2019 Appropriation Bill before a joint session of the National Assembly. The President highlighted the major economic challenges of 2018 and the key accomplishments of his administration before presenting the 2019 proposed budget.

Key highlights

• The overall policy thrust of the 2019 Budget is to ensure economic diversification, inclusive growth and sustainable development.
• At US$60 per barrel, the benchmark crude oil price increased from $51 per barrel in the approved 2018 Budget and actual average price for 2018 year to date of US$74 per barrel.
• Daily crude oil production is budgeted at 2.3 mbpd including condensates. This is the same as the budget for 2018 but higher than the actual average daily production year to date of circa 1.9 mbpd for 2018.
• Exchange rate of NGN305/US$ is maintained for 2019.
• Projected GDP growth rate is 3.01% with targeted inflation rate at 9.98%.
• Budget deficit is expected to reduce marginally by 4.8% from N1.95 trillion in 2018 to N1.86 trillion in 2019.
• The 2019 Budget contains provisions for fuel price subsidy, Niger-Delta Amnesty programme funding and minimum wage increase.
• Government plans to set up a committee to advise it on possible ways to fund the increase in minimum wage without resulting to additional borrowing.
• About N45 billion is budgeted for the recapitalisation of the Bank of Agriculture and Industry to subsidise loans to SMEs to ensure single digit interest rates

Read our Bulletin below for details and download a copy of the Budget presentation by the Minister for Budget & National Planning.

Download PwC Bulletin_Nigeria's 2019 Budget Highlights_Dec2018

Download HMBNP 2019 EBP Public Presentation Final

 

Looming Transfer Pricing Deadlines - Why you must act now to avoid millions in penalties

As we count down to the end of 2018 with excitement, the taxman is also counting down and may be excited for a different reason. To avoid being caught napping, please pay attention to the following transfer pricing deadlines which fall due by 31 December 2018 and act now:

1. Filing of all outstanding TP returns for 2013 to date (i.e. TP disclosure and TP declaration forms)
2. Preparation of TP documentation for 2013 to date
3. All members of Nigerian and foreign groups that meet the country-by-country reporting threshold (and have 31 December group accounting year-end date) are to notify the FIRS of the identity and tax residence of the group member making the CbCR disclosure on behalf of the group.

Failure to comply with (1) and (2) above will attract a minimum penalty of  ₦10 million per annum, for each act of non-compliance while failure to comply with (3) attracts a penalty of ₦5 million in the first instance and ₦10,000 for every day of default.

Ensure to act now before it is too late. For assistance please contact [email protected] or [email protected]