Nigeria New Regulation Requires Bank Customers to Present 3-Year Tax Clearance for Dollar Purchases Starting April 1

Nigerian banks have implemented a new requirement for customers seeking forex transactions through Form A, demanding the submission of the last three years' tax clearance certificates (TCC). Standard Chartered Bank notified its customers via email, confirming this mandate effective from April 1, 2024.

Under this directive, all Standard Chartered Bank customers using Form A must upload their TCCs for the years 2021, 2022, and 2023.

This obligation extends to both new and existing Form A applications processed through the Central Bank of Nigeria's trade monitoring system (TRMS).

The bank underscores that submitted TCCs will undergo verification in collaboration with state tax authorities before any application approval.


Other banks, including Fidelity Bank and Stanbic IBTC, have issued similar circulars, urging customers to furnish their TCCs to facilitate foreign exchange requests, particularly Form A applications.

A Tax Clearance Certificate (TCC) serves as documentation confirming the settlement of income taxes for the preceding three assessment years. It holds significant importance in official transactions, especially in sectors like government contracts and foreign exchange remittances.

Company TCCs are issued by the Federal Inland Revenue Service (FIRS), while individual TCCs are issued by respective State Boards of Internal Revenue (SBIR).

The TCC's primary function is to attest to tax compliance, aligning with the provisions outlined in Section 85(2) of the Personal Income Tax Act.