Lawmakers urge faster issuance of Tax Clearance Certificates Nigeria, proposing a three-month deadline to ease bureaucratic delays for workers

The House of Representatives on Thursday called for the timely issuance of Tax Clearance Certificates Nigeria to employees in both the public and private sectors, citing persistent delays that affect millions of taxpayers.

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The resolution followed the adoption of a motion moved during plenary by the member representing Eti-Osa Federal Constituency of Lagos State, Adebayo Balogun.

Personal income taxation in Nigeria is governed by the Personal Income Tax Act, which provides the legal framework for assessing and collecting personal income taxes.

Under Section 81 of the Act, the Pay-As-You-Earn system requires employers to deduct taxes from employees’ salaries and remit them to the relevant authorities.

Section 85 of the law mandates tax authorities to issue a Tax Clearance Certificate once it is confirmed that the taxpayer has fully settled liabilities for the relevant period.

Balogun, while presenting the motion, said many Nigerians who diligently pay their taxes under the PAYE system often face prolonged delays when attempting to obtain the certificates.

“The House is aware that millions of Nigerians in both the public and private sectors faithfully discharge their tax obligations through the PAYE system but never get their Tax Clearance Certificate as a result of undue delays from the relevant tax authorities,” he said.

He warned that the absence of a clearly defined timeline for issuing the certificates has created administrative inefficiencies and unnecessary bureaucratic bottlenecks.

According to the lawmaker, some employees have been compelled to resort to irregular means of obtaining the document to meet urgent requirements such as visa processing, school admissions for children, financial transactions or participation in political processes.

Following the adoption of the motion, the House urged State Internal Revenue Services across the federation to ensure that Tax Clearance Certificates Nigeria are issued to PAYE employees within three months after the end of the preceding tax year.

Lawmakers also mandated the House Committee on Finance to engage the Joint Tax Board, the Nigerian Revenue Service and various State Inland Revenue Services to develop a harmonised national framework for the timely issuance of the certificates.

The committee is expected to report back to the House within four weeks for further legislative consideration.

A Tax Clearance Certificate is an official document confirming that an individual or organisation has fully paid all due taxes for a specified period, typically covering the previous three years.

In Nigeria, the certificate is required for several official and commercial transactions, including bidding for government contracts, processing immigration documents, opening certain financial accounts and contesting elective positions.

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Tax experts say that addressing delays in issuing the certificates would not only reduce bureaucratic hurdles for workers but could also strengthen public confidence in the country’s tax administration system and encourage voluntary compliance.