Nigerian Govt Receives N184.59bn Foreign CIT in Q1

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The Company Income Tax (CIT) collected by the Nigerian government through the JP Morgan made up almost half of the total CIT collected in the first half of 2021.

Nigerian government received foreign currency denominated Company Income Tax (CIT) valued at N184.59 billion in the first half of this year.

This represents 47 per cent of the a total of N392.77 billion CIT collected in the period under review.

JP Morgan Chase in 2006 was engaged by the Federal Inland Revenue Services (FIRS) to collect tax revenue for Nigeria from foreign companies registered in Nigeria.

The FIRS had said the old method involved the Federal Reserve Bank in the United States, Bank of England, and Bank of Belgies in Netherlands collecting foreign denominated currencies as taxes.

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The agency noted that the old method was cumbersome and lacked adequate information necessary for proper supervision, monitoring and reconciliation, among others.

The Head of process and operations at FIRS, Y.M. Amazah, said, “In the light of the above, the FIRS secured the approval of the Federal Government to open dedicated domiciliary accounts into which its foreign currency denominated taxes will, henceforth, be paid.

He said the domiciliary accounts, 24 in number, opened along various tax types, had been opened with J.P Morgan Chase, New York for all US denominated payments, while J.P Morgan Chase, London, UK and J.P Morgan Chase, Frankfurt, Germany will receive pound sterling and euro denominated taxes, respectively.

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