The Federal Inland Revenue Service (FIRS) has officially halted the issuance of tax exemption certificates to all categories of taxpayers, including pioneer status companies, non-governmental organisations (NGOs), and businesses operating within Nigeria’s free trade zones.
In a public notice issued by the agency, the move was described as part of a broader effort to promote transparency and ensure strict adherence to existing tax laws. The agency made it clear that the era of routinely issuing tax exemption certificates has come to an end.
“The issuance of Tax Exemption Certificates has been discontinued,” the FIRS stated. “Consequently, no further Tax Exemption Certificates will be issued.”
While previously issued certificates will remain valid until their stated expiration dates, the agency emphasized that no renewals will be granted going forward. The change affects not just private companies with pioneer status but also NGOs and firms benefiting from regulatory incentives in free trade zones.
FIRS urged all affected stakeholders to align with the new directive and emphasized that going forward, any claims for tax exemptions or benefits must comply strictly with relevant laws and official procedures. The agency warned that attempts to forge, alter, or falsely represent exemption status will attract severe legal penalties.
This policy shift comes amid growing concern over revenue leakages and widespread misuse of tax privileges. Executive Chairman of FIRS, Zacch Adedeji, recently noted that Nigeria loses billions annually due to aggressive tax avoidance by multinational corporations. According to him, such losses weaken governance, limit investment in public services, and widen inequality.
By removing blanket exemptions and enforcing stricter regulatory controls, the FIRS aims to build a more transparent, equitable, and accountable tax system. The agency reiterated its commitment to closing loopholes and improving tax compliance while encouraging responsible corporate citizenship.
All further enquiries on the subject are to be directed to the Executive Chairman, the notice concluded.
