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Nigeria

Government and institution measures in response to COVID-19.

Government and institution measures in response to COVID-19.

Return to homepage  |  Last updated: 20 May, 2020

General Information

The Central Bank of Nigeria has set out a number of measures to tackle the impact of the coronavirus, including establishing a fund to support the country's economy (of 50 billion naira; i.e. EUR 121 million), targeted at households and micro and small enterprises. The interest rate has also been cut, a moratorium has been announced on principal repayments for CBN intervention facilities and tax measures are being taken.

Tax measures – Direct and Indirect

(e.g. payment deferrals, rate reductions…)

Click here to see a comprehensive summary of jurisdictional tax measures and government reliefs in response to COVID-19.

Economic stimulus measures

(e.g. loans, moratorium on debt repayments…)

Monetary Policy
  • On 16 March, the Central Bank of Nigeria announced new measures:
    • A 1 year extension of a moratorium on principal repayments for CBN intervention facilities;
    • The reduction of the interest rate on intervention loans from 9 percent to 5 percent;
    • Strengthening of the Loan to Deposit ratio policy (i.e. stepped up enforcement of directive to extend more credit to the private sector);
    • Creation of N50 billion target credit facility for affected households and small and medium enterprises;
    • Granting regulatory forbearance to banks to restructure terms of facilities in affected sectors;
    • Improving FX supply to the CBN by directing oil companies and oil servicing companies to sell FX to the CBN rather than the Nigerian National Petroleum Corporation;
    • Additional N100 billion intervention fund in healthcare loans to pharmaceutical companies and healthcare practitioners intending to expand/build capacity;
    • Identification of few key local pharmaceutical companies that will be granted funding facilities to support the procurement of raw materials and equipment required to boost local drug production;
    • N1 trillion in loans to boost local manufacturing and production across critical sectors.
  • The CBN has adopted a unified exchange rate system for Inter-Bank and parallel market rates to ease pressure on FOREX earnings as oil prices continues to plummet.
  • CBN adopts the official rate of N360 to a dollar for International Money Transfer Operators rate to banks.
  • For on-lending facilities financial institutions have been directed to engage International development partners and negotiate concessions to ease the pains of the borrowers.
  • Provision of credit assistance for the health industry to meet the potential increase in demand for health services and products "by facilitating borrowing conditions for pharmaceutical companies, hospitals and practitioners".

Fiscal Policy

  • The crude oil benchmark price was also reduced from USD 57 to USD 30.
  • The Central Bank pledged to pump NGN 1.1 trillion (USD 3 billion) into critical sectors of the economy.
  • Commencement of a three month repayment moratorium for all TraderMoni, MarketMoni and FarmerMoni loans
  • Similar moratorium to be given to all Federal Government funded loans issued by the Bank of Industry, Bank of Agriculture and the Nigeria Export-Import Bank.

Measures to ease the lockdown

  • PHASE 1: 4th -17th May 2020: Going out for work is permitted  but vi. Encourage work from home policy; Shops and Delivery from restaurants are allowed from 8.00a.m. to 3.00p.m.

Other measures and sources

Fiscal Policy

  • The Federal Government seeks to cut planned spending in the 2020 budget by about N 1.5 trillion (USD 4 billion), including a 20 percent cut to capital expenditure and a 25 percent cut to recurrent expenditure.

Suspension of new electricity tariffs:

  • On April 1st, the Nigerian Electricity Regulatory Commission (NERC) suspended the payment of the new electricity tariffs scheduled to commence on April 2nd, citing poor electricity supply, wide metering gap and the impact of the COVID-19 pandemic.

Reduction in Price of PMS

  • On April 2nd, the Federal Government further slashed the price of Premium Motor Spirit, PMS to N123.50 per liter, with effect from April 1, 2020 following the continued downward trend in oil price.
  • SEC & NSE grants 60 day extension
    On March 25, the Securities and Exchange Commission (SEC) and Nigerian Stock Exchange (NSE) announced the grant of a 60-day extension to issuers and dealing members for filing of 2019 full year financial reports, from 30 March 2020 to 29 May 2020.
  • NIS payment waiver for visitors affected by travel ban
    On 16 April, Nigeria Immigration Service (NIS) announced the grant of payment waiver to visitors / migrants affected by the travel ban and the closure of international airports. Affected persons are expected to reschedule their flights and travel within a week of the suspension of the restriction.

Taxpayers in Nigeria need to consider the impact of the coronavirus (COVID-19) pandemic on their businesses and in particular the expected increase in debt default rates, cancellations of contracts or “no-shows”.

Customs Measures

Export of mask

  • Some restrictions on exportation of masks have been implemented.

Other measures

  • Authorities are considering a wide range of COVID-19 support measures, including reductions of customs duty and customs audits but such measures are not officially announced.
  • No changes to Customs requirements as at 31 March 2020.

Payment facilities

  • Extension of filing due date for Value Added Tax (VAT) from the 21st day to the last working  day of the month, following the month of deduction.

Main sources of information:

Measures to ease the lockdown

  • PHASE 1: 4th -17th May 2020: Going out for work is permitted but vi. Encourage work from home policy; Shops and Delivery from restaurants are allowed from 8.00a.m. to 3.00p.m.

Main sources of information:

Contact us

Tax: Kofi Frempong-Kore kfkore@kpmg.com / Akpene Atieku - aatieku@kpmg.com / Emmanuel Asare - emmanuelasare@kpmg.com