Tax & Business Matters - Nigeria

Nigeria's 2025 Proposed Budget- Budget of restoration

On 18 December 2024, the President presented the 2025 Budget - a record N49.74 trillion, a 41.9% increase from the previous year, dubbed 'The Restoration Budget: Securing Peace, Rebuilding Prosperity'.

The Budget prioritises:
⁃ Defence & Security: N4.91 trillion
⁃ Infrastructure: N4.06 trillion
⁃ Education: N3.5 trillion
⁃ Health: N2.4 trillion

With a projected deficit of N13.39 trillion, funding will be sourced from:
⁃ Debt (69%)
⁃ Loans (28%)
⁃ Asset sales (2%)

The Budget will consolidate on key reforms such as the new minimum wage, duty-free food imports, and tax updates.

Please find below an infographic presenting a detailed analysis and overview of the 2025 Budget proposal, including its key assumptions

FIRS releases Guidelines on Advance Pricing Agreements (APA)

 

The Federal Inland Revenue Service (FIRS) has released the Guidelines on Advance Pricing Agreements (APA Guidelines) which will take effect from 1 January 2025.

 

This is a positive development for eligible taxpayers who may be interested in getting certainty on the Transfer Pricing treatment of their intercompany transactions in advance of undertaking the transactions. This APA can help to avoid costly and time-consuming disputes with the FIRS. 

 

Please read our Tax Alert which provides the key highlights of the APA Guidelines and the APA Guidelines from the FIRS below:

 

Download PwC Tax Alert - FIRS Guidelines on Advance Pricing Agreements (APA)

Download NIGERIA_APA GUIDELINES