Withholding taxes on bank deposits and dividends owed to states

The Senate of Nigeria has directed its Committees on Banking, Insurance and other Financial Institutions and Finance to investigate the non-remittance of withholding taxes on bank deposits and dividend payments owed to state governments. This follows a motion by Senator Ekwunife, who revealed that the Central Security Clearing System (CSCS) and banks fail to remit these taxes promptly and accurately, instead withholding revenues through under-remittance or non-remittance. The committees must recover all outstanding taxes and investigate the lack of transparency in reconciliation processes, which allows financial institutions to arbitrarily determine remittance amounts. The Senate mandated the committees to report back within four weeks.