Tax & Business Matters - Nigeria

CBN clarifies foreign exchange rule for imports through Buying Agents

On 18 November 2020, the Central Bank of Nigeria (CBN), issued a follow up circular further to its earlier notice of 24 August 2020, which directed authorised dealers against issuing Form Ms for imports where payments were not made directly to the ultimate supplier. Read our earlier alert here.

The New Circular clarifies that “Ultimate Supplier of Products (or USP)” means “the direct party selling the goods to the importer irrespective of whether the party involved is the manufacturer or internationally recognised buying company/ supplier/agent”

Read our alert below and a copy of the CBN Circular.

Download PwC Tax Alert_CBN revises forex rule for imports through Buying Agents_November 2020

Download CBN Desination Payment Circular_18Nov2020

Retirement Savings Account holders may now transfer their accounts from one PFA to another

The National Pensions Commission (PenCom) has announced the commencement of transfer of Retirement Savings Accounts (RSA) between Pension Fund Administrators (PFAs).

The transfer is scheduled to commence on 16 November 2020. With this arrangement, contributors to RSAs will be able to transfer their accounts from one PFA to another. PenCom plans to make this process seamless via an electronic platform developed by the Commission.

In line with Section 13(1) of the Pension Reform Act, 2014, a holder of a retirement savings account is allowed to transfer his account from one PFA to another once in a year. This is expected to improve competition among PFAs and consequently enhance the returns on pension contributions.

 

Nigeria has ratified the African Continental Free Trade Area (AfCFTA) Agreement

The federal government of Nigeria has ratified Nigeria’s membership of #AfCFTA. Find out the potential impact this will have on businesses and how Nigerian businesses can benefit from the treaty.

Thriving in a new Africa

AfCFTA - What you need to know

 

 

NEPC calls exporters to submit baseline data for 2019 and 2020 export ratings

On 14 October 2020, the Nigerian Export Promotion Council (NEPC) issued a Circular directing all exporters interested in the Export Expansion Grant (EEG) Scheme, to submit their baseline data in hard and soft copies for their 2019 and 2020 exports.

This is in preparation for the official launch of the EEG web portal. EEG is an incentive scheme granted to non-oil exporters who repatriate in full, the proceeds of their export transactions, as confirmed by the Central Bank of Nigeria. The certificates issued under this scheme are called the Export Credit Certificates (ECC). The ECC granted is a percentage of the export proceeds ranging from 5% for merchant exports to 15% for fully manufactured exports.

Read our alert for more details:

Download PwC Tax Alert_NEPC calls for baseline data_Oct2020