Lagos Bridge Finance Ltd advances a ₦200,000,000 term loan to Abuja Steel Plc at an annual interest rate of 18%. The loan attracts withholding tax (WHT) at the applicable rate under the Companies Income Tax Act (CITA). What is the net interest received by Lagos Bridge Finance Ltd in the first year?

Gross annual interest = 18% × ₦200,000,000 = ₦36,000,000. Under CITA and the WHT regulations, interest paid to a Nigerian company attracts WHT at 10%. WHT deducted = 10% × ₦36,000,000 = ₦3,600,000. Net interest received = ₦36,000,000 − ₦3,600,000 = ₦32,400,000. The WHT is a credit against the lender's final tax liability.