Nigerian States Set for N92.8bn Tax Refund as Supreme Court Backs AMCON Asset Sale
Nigeria's 36 states and FCT are to receive N92.8 billion in withholding tax refunds, while the Supreme Court has validated AMCON's N22 billion sale of Lagos Continental Hotel.
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Nigeria's Federation Account Allocation Committee (FAAC) has approved the distribution of N92.8 billion in withholding tax refunds to the country's 36 states and the Federal Capital Territory, according to The Nation Newspaper. The windfall represents accumulated taxes previously collected by federal authorities but now being returned to subnational governments.
The refund comes as state governments face mounting fiscal pressures amid currency volatility and elevated inflation. Nigeria's states have historically relied heavily on monthly FAAC allocations, which are primarily derived from oil revenues that have fluctuated with global crude prices and domestic production challenges.
In a separate development, the Supreme Court on February 20 affirmed the Asset Management Corporation of Nigeria's authority to sell the Lagos Continental Hotel for N22 billion, The Nation reported. The ruling strengthens AMCON's powers to dispose of assets acquired from non-performing loans, a mandate central to the corporation's mission of stabilising Nigeria's banking sector following the 2008-2009 financial crisis.
AMCON, established in 2010, has recovered significant sums through asset sales as it works to wind down its portfolio of distressed debts originally valued at over N5 trillion. The Lagos Continental Hotel sale represents one of the corporation's larger single-asset disposals in the hospitality sector.
Meanwhile, Nigeria's cement sector continues to face pricing concerns despite achieving self-sufficiency in 2012. According to The Nation, sweeping import restrictions and investment incentives drove massive capacity expansion over a decade ago, yet domestic prices remain elevated. The sector is dominated by major producers including Dangote Cement and BUA Cement, which together control approximately 85% of national capacity estimated at over 60 million tonnes annually.
Industry analysts attribute persistent high prices to multiple factors including elevated energy costs, naira depreciation affecting imported inputs, and limited competition in a market with high barriers to entry. The Central Bank of Nigeria's successive devaluations since 2023 have increased costs for manufacturers reliant on imported machinery parts and raw materials.