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By Daniel Adaji
The Federal Inland Revenue Service collected a total of N2,522,784,805.53 in withholding tax during the fourth quarter of 2024, according to data sourced from BudgIT’s accountability platform, GovSpend, on Tuesday.
Withholding tax is an advance tax deducted at source from certain types of payments made to individuals or companies. It is withheld by the payer and remitted directly to the relevant tax authorities. In Nigeria, withholding tax is applicable to various types of transactions, including but not limited to:
Contracts for construction, surveys, and supply Consultancy and professional services Dividends, interest, and royalty payments Rent for the use of land, buildings, or other assets
The rates for withholding tax vary depending on the nature of payment, such as: Rents on properties (10%) Dividends/Profits from companies (10%) Interest on bank deposits or securities (10%) Royalties (5%)
The withholding tax remittances were made by various ministries, departments, and agencies of the Federal Government across different sectors, including power, healthcare, works, and security.
The data highlights the government’s continued efforts to ensure tax compliance and boost revenue generation.
Among the notable remittances, the Federal Ministry of Power – Headquarters remitted N10,360,267.63 to FIRS as WHT deduction from Maridiq Nigeria Ltd on October 4, 2024.
Similarly, the National Institute for Cancer Research and Treatment made multiple payments totaling over N41m in withholding tax deductions from contractors, including Roksan Investment Synergy Ltd, A A Pavements & Contracting Ltd, and Sahar Continental Ltd.
The Nigeria Institute of Oceanography and Marine Research also remitted N5,649,350.12 as WHT for transactions related to Acute Options Limited on the same date.
Additionally, the Technical Aids Corps paid N7,450,513.40 in WHT deductions from transactions with Safety Travels Ltd, reflecting the broad scope of tax compliance across various sectors.
Further substantial remittances came from the National Commission for Refugees, which paid over N17m in withholding tax for skill acquisition training programs for widows and youths in Barkin Ladi Federal Constituency, Plateau State.
The Federal Ministry of Works also made significant payments, including N11,254,234.78 for withholding tax deductions involving Nanvillas Management Ltd and N9,260,384.75 for Nine and Ten Agro-Chemical Industries Ltd.
In the security sector, the National Drug Law Enforcement Agency remitted N23,458,665.71 in withholding tax for payments made to Maidenhead Global Ventures Ltd.
Additionally, the Economic and Financial Crimes Commission contributed over N17.9m in WHT deductions from transactions involving supply contracts for diesel and stationery to various EFCC offices across the country.
Other notable contributors included the Universal Basic Education Commission, which paid N6,655,357.64 in withholding tax deductions, and the Federal Capital Territory Administration, which remitted N17,679,375 for WHT on mobilization payments related to solar panel streetlight installation projects.