FINANCE ACT EFFECTIVE DATE VARIATION ORDER

What Is This Policy?

The Finance Act (Effective Date Variation) Order 2023 is an executive order signed by President Bola Tinubu on July 6, 2023, that deferred the commencement date of the Finance Act 2023 from May 1, 2023 to September 1, 2023. It also suspended the new 5% excise duty on telecommunications services, introduced excise on locally manufactured goods, and suspended the import duty increment on specific vehicles, providing businesses a legally compliant 90-day transition window.

Who Does It Target?

All corporate taxpayers and businesses affected by the 11 statutes amended by the Finance Act 2023 Telecommunications companies that would have faced an immediate 5% excise duty from May 2023 Manufacturers of excise-eligible goods (beverages, tobacco, cosmetics) and importers of named vehicles FIRS-appointed VAT withholding and collection agents required to update remittance systems and calendars

What Does It Aim to Achieve?

Give businesses, tax practitioners, and FIRS adequate time to update accounting systems, invoicing templates, and compliance procedures before new tax rules apply Honour the 90-day notice requirement in the National Tax Policy 2017, which prohibits tax changes from taking effect with less than 90 days' advance notice Review potentially burdensome excise and import levy provisions before they affect consumer prices and business competitiveness Signal fiscal continuity and policy predictability at the start of the Tinubu administration to maintain investor and business confidence

Key Features

Finance Act 2023 Deferral: All Finance Act 2023 amendments took effect from September 1, 2023, not May 1, 2023 as originally signed, giving a four-month compliance window Telecoms Excise Suspended: The 5% excise duty on telecommunications services introduced in the Customs, Excise Tariff Order 2023 was suspended pending further review; not yet implemented Green Tax Suspended: The new levy on single-use plastics introduced as a green tax was suspended; implementation timeline under review Vehicle Import Duty Suspended: Increments in import duty on specific named vehicles were suspended; old duty rates continued to apply VAT Withholding New Deadline Confirmed: Despite the general deferral, FIRS confirmed the new 14th-day VAT remittance deadline for appointed agents applied from September 1, 2023 TET Rate Increase Confirmed: Tertiary Education Tax increased from 2.5% to 3% effective from September 1, 2023, for accounting periods ending on or after that date

Current Status

Rollout Stage: Fully implemented; Finance Act 2023 provisions in force from September 1, 2023; suspended items (telecoms excise, green tax) remain under policy review Implementing Body: Federal Inland Revenue Service (FIRS); Nigeria Customs Service; Federal Ministry of Finance Compliance Status: Corporate taxpayers should be filing under the September 1, 2023 effective date; FIRS has issued clarifications on TET proration and VAT agent obligations Tax Reform Acts 2024: The Tax Reform Acts 2024 (effective 2025) represent a more comprehensive restructuring of Nigeria's tax system and supersede some Finance Act 2023 provisions

How to Access

Taxpayers: Download FIRS public notices and the official Finance Act 2023 text from firs.gov.ng; obtain the gazetted Effective Date Variation Order from the Federal Ministry of Justice Tax Practitioners: Access implementation guidance from KPMG, PwC, Deloitte, and EY Nigeria Finance Act 2023 analyses for detailed advisory support FIRS Queries: Contact the FIRS Tax Advisory and Legal Division for specific technical queries on Finance Act 2023 provisions: firs.gov.ng | 0800 1000 3477 Contact: FIRS: firs.gov.ng | Revenue House, 15 Sokode Crescent, Wuse Zone 5, Abuja | 0800 1000 3477

Important Terms

90-Day Tax Policy Rule: The National Tax Policy 2017 requires 90 days' advance notice for all changes to tax laws; the Effective Date Order enforces this principle for the Finance Act 2023 Suspended vs. Deferred: Suspended provisions (telecoms excise) have no current effective date; deferred provisions (Finance Act 2023 amendments) took effect on September 1, 2023

Official Resources

Website: firs.gov.ng Contact: FIRS, Revenue House, 15 Sokode Crescent, Wuse Zone 5, Abuja | Helpline: 0800 1000 3477 Policy Summary | Source: FIRS, Kreston Pedabo, KPMG Nigeria, Mondaq Nigeria, Businessday, EY Nigeria | February 2026

Legal Framework

The Finance Act (Effective Date Variation) Order 2023 is issued under the President's executive powers under Section 5 of the 1999 Constitution and the Finance Act 2023 transition provisions. It operates alongside the Finance Act 2023, the Companies Income Tax Act, and the Value Added Tax Act. Constitutional authority for deferring tax commencement dates derives from the Finance (Control and Management) Act's provisions on executive implementation of fiscal legislation.