The Federal Inland Revenue Service has discontinued the issuance of tax exemption certificates to all categories of taxpayers, including pioneer status companies, non-governmental organisations, and free zone entities.
In a public notice signed by its Executive Chairman, Zacch Adedeji, the agency declared that no further tax exemption certificates would be issued, warning that previously granted certificates would remain valid only until their expiry dates, after which renewals would no longer be allowed.
“The issuance of Tax Exemption Certificates has been discontinued. Consequently, no further Tax Exemption Certificates will be issued,” the public notice read. The FIRS noted that all future claims for tax benefits or exemptions must now comply strictly with applicable laws and follow procedures approved by the Service.
It also cautioned that any attempt to forge, alter, or misrepresent exemption status would attract stiff penalties as prescribed by law.
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Reaffirming its commitment to transparency, the agency urged all stakeholders to align with the revised rules and obligations.
“All further enquiries on the above subject should be addressed to the Executive Chairman,” the notice added. This policy shift comes amid growing concerns over Nigeria’s rising tax expenditure and the lack of reliable data to assess its economic impact.
Adedeji had two months ago revealed that revenue lost to tax expenditure remains difficult to quantify due to poor data availability across relevant government agencies.
He said this is because tax incentives are not properly weighed against their real economic benefits, which makes it hard to know their true cost and creates room for unverified tax expenditure figures in different quarters.