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FIRS to collect income tax on bonds, short-term securities

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The Federal Inland Revenue Service (FIRS) says it will start collecting taxes on company income derived from bonds and short-term securities.

A bond is a fixed-income instrument (loan) made by an investor to a borrower (typically corporate or government).

In 2012, the FG had exempted bonds and short-term government securities from income tax for 10 years.

With the expiration, FIRS said companies will now pay taxes on profits from loans given to their government from January 2, 2022.

The new directive, contained in a circular obtained by TheCable, FIRS mandates businesses to pay income tax on the profit earned from bonds and short-term government securities, exempting income tax on bonds issued by the Federal Government.

It listed short term government securities to include treasury bills and promissory notes; bonds issued by state and local governments and their agencies; and bonds issued by corporate bodies and supra-national.

“The taxpaying public is hereby invited to note that income tax applies to income derived by companies from bonds and short-term securities effective from 2nd of January, 2022, except for bonds issued by the federal government,” the circular stated.

The circular further directed FIRS agents to make deductions on interest and other payments made to any company on income from bonds and other securities.

He urged Nigerians to obey the law by complying with the new directive.

“Taxpayers are, therefore, expected to comply with the law by including such income in the self-assessment returns and tax computation of companies and paying appropriate taxes,” he said.

Meanwhile, Taiwo Oyedele, fiscal policy partner and Africa tax leader at PwC, said the new development would raise the cost of borrowing for issuers.

Analysing the document, Oyedele said that WHT at 10 percent would be applicable as an advance payment against companies income tax (CIT) of 30 percent in addition to Education Tax of 2 percent for resident companies, while WHT at 10 percent or 7.5 percent will be the final tax for non-resident investors.

“This will raise the cost of borrowing for issuers,” Oyedele said.

“You may need to track the income on various securities and segregate taxable from exempt income for tax purposes. Any expense incurred in generating taxable income will be tax-deductible.”

He urged Nigerians to take necessary steps to ensure compliance and tax optimisation.

While some experts like Oyedele try to prepare the public for the deductions, the development was a hard pill to swallow for some others.

Expressing his view, Kalu Aja, a financial expert, said a big reason for investing in municipal bonds (local government bonds) is that it is tax-free.

Aja questioned the rationale behind taxing loans made to the government by its citizens.

“How can a government borrow from me and tax me because I lend (sic) cash to the government? Why are federal loans tax-free, but state loans are not? Is Nigeria not the Federal Republic?” he tweeted.

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High Power Bills Force BUK to Halt Electric Vehicle Charging on Campus

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High Power Bills Force BUK to Halt Electric Vehicle Charging on Campus

 

Rising electricity costs have forced Bayero University, Kano, to ban the charging of privately owned electric motorcycles and other electric vehicles across its campuses.

The university said the growing practice of using its electricity supply to charge private electric vehicles had contributed significantly to a sharp increase in its power bills, creating an additional financial burden for the institution.

The directive, which takes immediate effect, was contained in a statement issued on Tuesday by the university’s Director of Public Affairs, Lamara Garba.

According to the statement, the management has observed the “indiscriminate charging” of privately owned electric motorcycles and other electric vehicles using the university’s electricity supply.

It said the development was no longer sustainable at a time when the institution was seeking to manage its resources prudently.

“The Management of Bayero University, Kano has observed with concern the indiscriminate charging of privately owned electric motorcycles and other electric vehicles using the University’s electricity supply across its campuses.

“This practice has contributed significantly to the sharp increase in the University’s electricity bills, thereby placing an enormous financial burden on the institution,” the statement said.

The university consequently directed all staff, students, commercial motorcycle operators and other users of electric motorcycles to stop charging their vehicles with the institution’s electricity.

It warned that anyone who violated the directive would face disciplinary action in accordance with the university’s rules and regulations.

“Management expects full compliance with this directive. Any person found violating this ban will be liable to appropriate disciplinary action,” the statement added.

To enforce the ban, the university directed provosts, deans, directors, heads of departments and heads of units to monitor compliance in their respective areas and report any violations to the appropriate authorities.

It also announced that a monitoring team would conduct regular patrols across the campuses to ensure strict adherence to the directive.

The institution urged all affected persons to cooperate with the measure, saying it was part of broader efforts to reduce energy costs and promote the prudent use of university resources.

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Zenith Bank confirms cyberattack, says customers’ contact information was accessed

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Zenith Bank confirms cyberattack, says customers’ contact information was accessed

Zenith Bank confirms cyberattack, says customers’ contact information was accessed

Zenith Bank has confirmed that hackers gained unauthorised access to limited customer information, including email addresses and phone numbers, following a cyberattack linked to a broader global attack affecting organisations across different sectors.

The bank disclosed the incident in an email sent to customers on Tuesday, assuring them that its banking services and digital channels remain secure and fully operational.

According to the lender, the breach involved only limited customer information, while its core banking infrastructure and digital platforms were not affected.

Zenith Bank said it activated its incident response procedures and other cybersecurity measures immediately after the unauthorised access was discovered.

The bank added that investigations were ongoing to establish the circumstances surrounding the incident, determine its full impact and strengthen measures designed to prevent further security breaches.

“Hackers accessed limited customer information, including email addresses and phone numbers, during a cyberattack that forms part of a broader global attack on organisations across different sectors,” the bank said.

Although Zenith Bank did not disclose the number of customers affected or identify the individuals or group responsible for the attack, it maintained that its banking services remained secure.

The bank also did not indicate whether sensitive financial information, such as account balances, transaction records, passwords, PINs or banking credentials, was accessed.

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The development has raised concerns about possible phishing attacks, fraudulent text messages and deceptive phone calls, as cybercriminals may attempt to use customers’ contact information to impersonate the bank or obtain confidential banking details.

Zenith Bank urged customers to remain alert and exercise caution when receiving unexpected emails, text messages or phone calls claiming to originate from the bank.

The lender warned customers not to disclose their passwords, Personal Identification Numbers, One-Time Passwords or other security credentials to anyone.

Customers were also advised to avoid clicking suspicious links, downloading unfamiliar attachments or responding to unsolicited requests for banking information.

The bank said customers should independently verify suspicious communications through its official channels before taking any action.

Zenith Bank has previously warned customers about fraudulent messages and impersonation attempts, stressing that customers should rely only on verified communication channels when seeking banking support. (Zenith Bank Gambia)

The latest Zenith Bank cyberattack has renewed concerns about the growing threat of cybercrime in Nigeria’s financial sector, particularly as more customers depend on mobile banking applications, internet banking and other digital financial services.

In August 2024, Guaranty Trust Bank, now operating under GTCO, reported attempts to compromise its website domain. The bank said at the time that customers’ data had not been affected and that its banking operations remained secure.

The Central Bank of Nigeria (CBN) has also warned Nigerians about fraudulent emails, online messages and other communications falsely presented as official notices from financial institutions and regulatory agencies.

Such messages may contain suspicious links or requests for personal information intended to deceive recipients and gain unauthorised access to their accounts.

Zenith Bank said it remained committed to protecting customers’ information and thanked customers for their continued trust while investigations into the security incident continue.

As of the time of filing this report, the bank had not disclosed the number of customers affected, the source of the cyberattack or whether any financial information was compromised.

Zenith Bank confirms cyberattack, says customers’ contact information was accessed

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FRSC Boss: Tinubu’s CNG, EV Drive Creating Jobs, Attracting Investment

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FRSC Boss: Tinubu’s CNG, EV Drive Creating Jobs, Attracting Investment

President Bola Tinubu’s ambitious transition to Compressed Natural Gas (CNG) and Electric Vehicles (EVs) is already attracting fresh investments, creating new employment opportunities and laying the foundation for a cleaner, safer and more sustainable transport system, the Corps Marshal of the Federal Road Safety Corps (FRSC), Shehu Mohammed, has said.

Speaking at the 2026 Nigeria Auto Industry Summit (NAISU) organised by the Nigeria Auto Journalists Association (NAJA), Mohammed described the Presidential CNG and EV Initiative as a game-changing policy capable of reshaping Nigeria’s automotive and transportation landscape while stimulating industrial growth and youth employment.

The FRSC boss said the initiative aligns with the United Nations Sustainable Development Goals (SDGs), particularly those promoting climate action and sustainable transportation, while commending President Bola Tinubu for the bold reforms and for assigning the corps a strategic role in the programme’s implementation.

“This initiative has brought in so many investments. We have assembly plants producing electric vehicles and CNG vehicles, companies manufacturing CNG cylinders and conversion kits, and new technology that is creating opportunities for our youths,” he said.

According to him, the initiative is expected to generate thousands of jobs while positioning Nigeria as a leading destination for green mobility investments in Africa.

“Really, it is a massive investment coming into Nigeria, and it is producing massive jobs for the unemployment challenge we have,” he added.

Mohammed also linked the administration’s transport agenda to ongoing infrastructure projects, including the Lagos-Calabar Coastal Highway and the Sokoto-Badagry Super Highway, noting that the projects would improve connectivity and support a safer, more efficient transport network.

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He expressed confidence that the reforms would help Nigeria achieve the United Nations target of providing “a safe, accessible, affordable, reliable and sustainable transport system for all Nigerians by 2030.”

On road safety, the Corps Marshal stressed that reducing road crashes and fatalities requires collective action rather than relying solely on the FRSC.

“Road safety should not be left to the FRSC alone. It is a collective responsibility involving government, communities and every Nigerian,” he said.

While noting that the corps has sustained public enlightenment campaigns for over three decades, Mohammed said greater participation from state governments, local councils, traditional institutions and community leaders is essential to changing road users’ behaviour.

He disclosed that the FRSC has expanded its awareness campaign beyond motor parks to grassroots town hall meetings, enabling the agency to engage drivers, passengers and community stakeholders more directly.

“When you see a bad driving culture, stop the person and caution him. Let him be embarrassed. Road safety is everyone’s responsibility,” he said.

The Corps Marshal expressed concern over persistent traffic violations such as speeding, overloading and the dangerous practice of conveying passengers alongside goods and livestock, warning that such behaviours remain major causes of fatal crashes.

He also urged passengers to challenge reckless drivers, particularly those who exceed speed limits, saying public intervention could save lives.

Mohammed commended NAJA and the media for their sustained support for the FRSC’s road safety campaigns and called for deeper collaboration with journalists to achieve the global target of cutting road traffic crashes, injuries and fatalities by 50 per cent before 2030.

Speaking on the legacy he hopes to leave, the FRSC boss said his priority is to build a technology-driven, people-focused organisation anchored on professionalism, collaboration and excellent service delivery.

“The legacy I want to leave is partnership, collaboration and bringing out the best in FRSC personnel to serve Nigerians and further enhance the image of the corps,” he said.

 

FRSC Boss: Tinubu’s CNG, EV Drive Creating Jobs, Attracting Investment

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