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7. Withholding tax settings

Who can do this: only the Platform Super Administrator (PSA).

Before you start: you need the reason or authority for the change. For example: "Tax adviser's opinion of 25 October 2026". The reason must have at least 5 characters.

Steps​

  1. Sign in as the PSA.
  2. Open Investment schemes.
  3. On the scheme card, select Withholding tax. The dialog is titled "Withholding tax for SCAFI" (or the other scheme).
  4. In On dividends (%), enter the rate. The term sheet sets 5% on accrued dividends.
  5. In On redemptions (%), enter the rate. 0 means no tax is withheld on redemptions. The default is 0%.
  6. In Redemption tax is charged on, choose one:
    • The return above cost (the default). Tax is charged only on the gain.
    • The whole redemption amount.
  7. In Reason or authority, type the reason. At least 5 characters.
  8. Select Save.

What happens next​

  • The change is audited as INVESTMENT_SCHEME_TAXATION_UPDATED. The record shows the old and new rates and the reason.
  • The new rates apply only to new dividend declarations and new redemption requests. Dividends and redemptions already declared or requested keep the rate they were priced with.

Note​

The dialog says that, under the Nigeria Tax Act 2025, redeeming units of an open-ended scheme is not a taxable disposal. This is why the default redemption rate is 0%. This manual does not give tax advice. Check any change with the tax adviser named in the reason.

Common problems​

ProblemWhat to do
"Only the platform super admin can change withholding tax."Ask a PSA to make the change.
"Record the reason or authority for the change (at least 5 characters)"Type a longer reason.
"Enter a rate in percent, for example 5 or 7.5"Type the number only, with no % sign.