President Muhammed Buhari, on 31 December 2020, signed the Finance Act 2020 alongside the 2021 Appropriation Act into law. This reaffirms the Federal Government of Nigeria’s commitment to enact fiscal policy annually, alongside the passage of the annual budget into law (i.e. enactment of Appropriation Act) and aligns with global best practice.
The Finance Act 2020, which took effect on 1 January 2021, amended the provisions of 14 tax and fiscal related legislation, namely:
In addition to the above, the Finance Act 2020 created a Crisis Intervention Fund (CIF) and its sub-fund, Unclaimed Funds Trust Fund (UFTF).
This newsletter gives an overview of the Finance Act 2020, analyses the key provisions vis-à-vis the changes to the primary legislation and highlights the potential tax implications for stakeholders.