The Private Companies Conversion and Listing Bill is undergoing legislative proceedings at the National Assembly. The Bill seeks to compel private companies to convert to public companies by becoming listed on the Nigerian Stock Exchange. The treshhold for mandatory conversion is shareholders fund of NGN 40 billion (around USD 250 million), turnover or total assets of NGN 80 billion (USD 500 million). Tax waivers of up to one-third of applicable tax rate may be granted while a fine of 10% of annual turnover and imprisonment of at least 2 years may be imposed for non compliance.
Read our tax alert uploaded below for further insights.