Naira depreciation responsible for N1.7trn manufacturers’ losses – FIRS

The Chairman of the Federal Inland Revenue Service (FIRS) Zacch Adedeji has said that manufacturing companies in Nigeria lost about N1.7trillion as a result of naira depreciation in 2023, not tax fines as widely speculated.

Adedeji said this in Abuja during an interactive session with the Senate Committee on Finance at the National Assembly Complex.

Speaking about the negative effect of the company’s exodus, Adedeji said the losses have made the country lose hugely in terms of tax collection.

“I don’t know anybody that followed in the last year, all manufacturing entity in Nigeria, they declared a total of N1.7trillion losses just as a result of forex and we are saying that okay, one sector of the economy had declared N1.7trillion losses and ask me how does that concern government.

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“It concerns the government because, by our law, we will not be able to collect any taxes from them until they recover all those losses, till next 10 years, five years. Even when they make a profit next year, they will tell you they have losses they are carrying forward,” he said.