The Nigerian SEC will begin taxing fixed incomes

[OmoAlaji]

Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC), will commence charging regulatory fee on fixed income secondary market transactions with effect from January 1, 2022.

In a circular released yesterday, SEC stated that the commencement of regulatory fee on bonds and other fixed-income transactions on the secondary market, is pursuant to Section 13(u) of the Investments and Securities Act (ISA), 2007 and Schedule 1, Part D of the SEC Rules (Registration Fees, Minimum Capital Requirements, Securities and others). These rules empower the SEC to levy, among others, fees on transactions relating to investments and securities business in Nigeria.

The circular stated that the regulatory fee structure on secondary market transactions on bonds will take effect from January 1, 2022 and secondary market transactions on bonds shall include bond transactions executed on a securities exchange, reported by voice or by any other means to an exchange as having being transacted thereon or of which the information of the transaction details are featured on the exchange’s platform for purposes including but not limited to onward transmission to a depository for settlement, price discovery and corporate disclosure.

 

[Sean]

I heard about this, and at first, I was hesitant about such tax reform. Could it really be true? I was not prepared for such a future. If the tax system continues to be so harsh on everyone who owns any property, it could end up being a terrible thing. They make people wonder how to make fake check stubs. I think that such resources help keep their financial savings not only for investors but also for ordinary factory workers. In this case, I don't see any other ways or options for development.

 

[Adewale Stock]

I heard about it and at first I was hesitant about such tax reform. Could it really be true? I was not prepared for such a future.

It’s true. They will start enforcing it very soon. I don’t know what they expect investors to be ok with the amount of tax they want to charge.