10% Tax Na New Jam For Short-Term Investments, E Don Land!

Abuja, Nigeria – E be like say Nigeria no wan make people chop better money again o! Di Federal Inland Revenue Service (FIRS) don drop fresh directive wey go make banks, stockbrokers, and all di financial wahala-makers collect 10% withholding tax on interest wey investors dey enjoy from short-term securities.

This news wey land on Tuesday don change di whole gist concerning treasury bills, corporate bonds, and all those nice investment instruments wey people dey rush for returns. Before dis time, dem dey enjoy tax-free life, but now, e be like FIRS dem don change dia mind, wan make dem chop small cash from investors.

Wetin even make matter worse be say, dis new tax go start to dey withdraw from di point of payment. Dem say e go apply to all di short-term securities, and only di interest on federal government bonds go still dey free from dis tax wahala. So, if you dey think say your luck go shine for bonds, e be like say you fit still dey jolly without any wahala.

According to FIRS Executive Chairman, Zacch Adedeji, “All relevant interest-payers are required to comply with this circular to avoid penalties and interest as stipulated in di tax law.” (Abeg, no fit play bet for dis one o! Follow dem law, make you no enter trouble.)

Some financial analysts don talk say dis move be double-edged sword. E fit dey generate revenue for di government, but e fit also give investors serious second thoughts about short-term returns, especially as dem dey prepare for di economic cycle wey dey come in January.

One financial guru wey dey know di business well, Dennis O’Shea, come drop here say, “Na di government wan take advantage of di money matter to widen dia tax net and increase non-oil revenue.” (Chai! E be like say dem wan squeeze our pockets small, small.)

But, e no be only wahala dem dey see. Dis tax fit shift di focus of investors to long-term opportunities, wey go help balance di risks for di government as well. O’Shea come highlight say countries like China dey run five-year plans wey fit help Nigeria vibe for stable economic growth instead of just short-term returns.

As e stand now, di government wan fit jammant measure wey no go just bring money, but also no go make investors vex and run away. Investors go still dey get tax credits for di amounts wey dem withhold unless dem dey consider di deduction as final tax. (E no easy, but na so di game be.)

As we dey watch how dis new directive go unfold, e clear say di government dey serious to strengthen dia non-oil revenue sources. But one thing wey we go still dey wonder be how much dem expect to gather from this withholding tax. Na where dem wan fit come chop money dey suspenseful pass. Unapologetic wahala dey ahead, my people!