Who must have a Tax Identification Number under Nigeria’s new tax law?

Any individual or business that earns income through employment, trade, or other economic activity must have a Tax Identification Number. Students and dependants who do not earn income are exempt.

When does the tax ID requirement for bank accounts take effect?

The requirement takes effect from 1 January 2026, in line with the Nigerian Tax Administration Act.

Will bank accounts be restricted without a tax ID?

Taxable persons who do not have a tax ID may face difficulty operating their bank accounts in the future, although no immediate blanket restriction has been announced.

Are existing taxpayers required to obtain a new tax ID?

No. Individuals and businesses that already have a valid Taxpayer Identification Number do not need to register again.

Is the new tax law designed to increase taxes?

No. The reforms aim to expand the tax base, simplify compliance, and provide tax relief for low-income earners rather than increase the burden on existing taxpayers.

Tag: Tax Reform

FG Warns Nigerians: Filing Annual Tax Returns Is Mandatory

The Federal Government has urged Nigerians to file their annual tax returns, warning that compliance is a legal duty for both individuals and employers.

The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele made the call during a webinar organised with the Joint Revenue Board and aimed at human resource professionals, payroll managers, chief financial officers and tax managers. The session was later shared on YouTube.

He said many employers were close to missing the deadline for submitting annual employee tax returns, which include income projections for the year.

“You need to file annual returns as employers for your employees. Many of you may have done so already. If you haven’t, you only have a few days left,” Oyedele said.

He added that individuals are also required to submit self-assessment tax returns, but compliance remains weak across the country.

“This is one area where Nigeria is largely non-compliant. In many states, more than 90% of people do not file returns. Even the most organised states struggle to reach 5%,” he said.

Oyedele warned workers against assuming that tax deductions made by employers are enough to meet legal obligations.

“Many employees think once tax is deducted from their salary, they are done. That is wrong. Under both the old and new tax laws, individuals must still file returns,” he said.

He said recent tax reforms place clear responsibility on workers to declare their income, regardless of how much they earn.

“All of us must file our returns, including low-income earners. Returns for the previous fiscal year must be filed by 31 March,” Oyedele said.

He also revealed that businesses benefiting from tax incentives now face additional disclosure duties.

“Companies enjoying incentives must declare them when filing tax returns or shortly after. This requirement is part of the new tax law,” he said.

Oyedele added that tax authorities are working to simplify the filing process to improve compliance nationwide.

January 31, 2026
Tinubu’s 2026 Economic Promises: What Nigerians Should Expect
President Bola Tinubu 2026 economic promises have become a central talking point as Nigerians enter a new fiscal year shaped by reforms, rising costs, and public anxiety. In his New Year address, President Bola Tinubu said 2026 would mark a stronger phase of economic growth. He pointed to falling inflation, improved foreign reserves, and higher investment flows.

The message was clear. The government believes the hardest phase of reform is over. The question for Nigerians is whether daily life will reflect those gains.

Tinubu 2026 Economic Promises and the Big Picture

At the core of Tinubu 2026 economic promises is the claim that Nigeria’s economy is stabilising after a period of shock. The President said reforms carried out in 2024 and 2025 had reset public finances and restored confidence. He argued that the country recorded steady GDP growth despite global pressures.

Government figures suggest annual growth could exceed four per cent. Officials also highlight trade surpluses and stronger exchange rate management. These numbers matter to investors and policymakers, but many Nigerians judge progress by prices, jobs, and income.

Inflation Claims Versus Household Reality

One of the most striking claims in the Tinubu 2026 economic promises is that inflation dropped below 15 per cent by the end of 2025. The administration says tighter monetary policy and fiscal discipline helped curb price growth.

For households, the picture remains mixed. Food prices stay high in many markets. Transport costs remain sensitive to fuel prices. Rent continues to rise in urban centres. Lower inflation does not mean cheaper goods. It often means prices rise more slowly, not that they fall.

Economic Growth and Job Creation Questions

Economic growth is meaningful only if it creates jobs. Tinubu’s government says growth in 2026 will support employment, especially through agriculture, trade, and local production. The Renewed Hope Ward Development Programme aims to engage at least 10 million Nigerians.

Critics note that job growth has lagged behind population growth for years. Youth unemployment remains high. Many jobs created are informal and low-paying. For Tinubu 2026 economic promises to gain public trust, job quality will matter as much as job numbers.

Foreign Investment and Market Confidence

Foreign direct investment featured prominently in the President’s address. According to official data, inflows rose sharply in late 2025. The government credits policy reforms and improved market signals.

International ratings agencies have responded with cautious optimism. Still, investors often focus on policy consistency, security, and infrastructure. Any policy reversals or instability could slow momentum. Sustained inflows depend on whether reforms remain predictable beyond political cycles.

Tinubu 2026 Economic Promises and Tax Reforms

Tax reform is a major pillar of Tinubu 2026 economic promises. New tax laws aim to simplify collection, widen the tax base, and reduce multiple taxation. Low-income earners below the set threshold are exempt from personal income tax.

Supporters say this could protect vulnerable Nigerians and support small businesses. Critics worry about enforcement capacity and trust. Nigerians often question whether higher tax revenue translates into better services. Transparency will be key to public acceptance.

For more on Nigeria’s tax framework, see:
- Federal Inland Revenue Service (NoFollow): https://www.firs.gov.ng
- Budget Office of the Federation (NoFollow): https://budgetoffice.gov.ng
Infrastructure Spending and Fiscal Discipline

The President promised continued investment in roads, power, ports, railways, and healthcare. Infrastructure spending is presented as a growth driver and a job creator.

The challenge lies in funding. Debt servicing still consumes a large share of revenue. While reforms aim to increase fiscal space, delays in project delivery remain common. Nigerians will watch whether 2026 brings visible progress or recycled announcements.

Security as an Economic Factor

Tinubu linked economic growth to improved security. He cited joint operations with international partners and ongoing military campaigns against armed groups. Security affects farming, transport, and investor confidence.

Persistent insecurity raises costs and disrupts supply chains. Even strong economic policies struggle in unstable environments. The success of Tinubu 2026 economic promises partly depends on whether security conditions improve in key regions.

Stock Market Gains and Who Benefits

The Nigerian Stock Exchange recorded strong gains in 2025. The government presents this as evidence of renewed confidence. Market growth can support pensions and long-term savings.

However, stock market gains mainly benefit a small segment of the population. Many Nigerians remain outside formal investment markets. Broader financial inclusion would help spread these benefits beyond institutional investors.

Cost of Living and Public Expectations

Public reaction to Tinubu 2026 economic promises remains cautious. Many Nigerians accept that reforms take time. Others feel the burden has been uneven. Fuel subsidy removal and currency changes hit consumers hard.

Expectations in 2026 will focus on relief. Stable prices, reliable power, affordable transport, and job opportunities will shape public opinion more than macroeconomic charts.

Political Context and Credibility

Economic promises do not exist in isolation. Political trust affects how citizens interpret government claims. With 2027 on the horizon, economic messaging carries political weight.

Consistency between words and outcomes will determine credibility. Nigerians have heard reform promises before. Delivery, not declarations, will define the legacy of Tinubu 2026 economic promises.

What Nigerians Should Watch in 2026

Several indicators will reveal whether promises translate into progress:
- Food and transport prices
- Employment data
- Power supply stability
- Tax enforcement fairness
- Security developments
Clear communication and regular updates will help manage expectations. Silence or mixed signals could deepen scepticism.

Conclusion: Cautious Hope, Hard Tests Ahead

Tinubu 2026 economic promises outline an ambitious vision of recovery and growth. The government presents data that suggest improvement. Many Nigerians remain unconvinced, shaped by daily pressures and past experiences.

2026 will test whether reforms move from policy statements to lived reality. Economic progress must reach households, not just balance sheets. Only then will the promises of a stronger economy feel real to ordinary Nigerians.
January 1, 2026
Tinubu Insists New Tax Laws Start January 2026

President Bola Tinubu has said the new tax laws will take effect on 1 January 2026 as planned, despite criticism from opposition figures and claims of irregularities in the legislation.

In a statement he personally signed and released by the State House on Tuesday, the President said there was no basis to halt or delay the reforms. His comments followed objections from former Vice President Atiku Abubakar and the Peoples Democratic Party, who described the move as rushed and insensitive amid ongoing controversy.

Tinubu signed four Tax Reform Bills into law on 26 June 2025. They are the Nigeria Tax Act, the Nigeria Tax Administration Act, the Nigeria Revenue Service Act and the Joint Revenue Board Act. While some provisions have already taken effect, others are scheduled to commence in January 2026.

According to the President, the reforms are aimed at overhauling Nigeria’s tax system to improve revenue generation, strengthen administration and create a better business environment across all levels of government.

“The new tax laws, including those scheduled to commence on January 1, 2026, will continue as planned,” Tinubu said. He described the reforms as a rare chance to build a fair and competitive fiscal system.

He added that the laws were not intended to raise taxes but to reset the structure, promote harmonisation and strengthen the social contract between government and citizens.

The President acknowledged public debate over alleged alterations to parts of the laws but said no serious issue had been established to justify stopping the process. He stressed that trust was built through consistent decisions, not sudden reversals.

Tinubu also reaffirmed his commitment to due process, saying the Presidency would work with the National Assembly to address any concerns raised.

“I assure all Nigerians that the Federal Government will continue to act in the public interest to ensure a tax system that supports prosperity and shared responsibility,” he said.

The controversy follows claims by a member of the House of Representatives from Sokoto State, Abdulsamad Dasuki, who alleged that some provisions in the gazetted laws were not debated or approved by lawmakers. The claims have led to calls for the suspension of the reforms, which the Presidency has now rejected.

December 31, 2025
Reps probe alleged changes to new tax laws, PDP seeks delay

The House of Representatives has set up an ad hoc committee to investigate claims that Nigeria’s newly passed tax reforms were altered before being gazetted by the Federal Government.

The move came on Thursday after a lawmaker raised concerns about discrepancies between the versions approved by parliament and the copies now in circulation across government agencies.

The opposition Peoples Democratic Party (PDP) has also called on the Federal Government to postpone the January 1, 2026 start date of the new tax regime by a further six months. The party said the delay would allow time to investigate the alleged changes and carry out wider public awareness campaigns.

President Bola Tinubu recently signed four major tax reform bills into law, describing them as the biggest overhaul of Nigeria’s tax system in decades. The laws are scheduled to take effect from January 2026 after a six-month transition period.

At Wednesday’s plenary, Abdussamad Dasuki, a PDP lawmaker from Sokoto State, warned that any unauthorised alterations could leave the laws open to legal challenge. He urged the House to compare the gazetted version with what lawmakers passed, describing the situation as a constitutional breach.

Responding on Thursday, Speaker Tajudeen Abbas announced a seven-member committee to probe the matter. The panel is chaired by Mukhtar Betara and includes Idris Wase, James Faleke, Sada Soli, Igariwey Iduma, Fredrick Agbedi and Babajimi Benson.

The PDP praised Dasuki for raising the issue and demanded that the commencement of the Tax Act be shifted by at least six months. The party warned that inserting provisions not approved by parliament could undermine public trust in lawmaking.

The call adds to wider criticism of the reforms. A coalition known as the National Opposition Movement has demanded that implementation be suspended, arguing the new tax regime would worsen living conditions.

The Federal Government has rejected the criticism. Presidential adviser Tope Fasua said the reforms were pro-poor and aimed at improving revenue without increasing hardship. He added that misinformation had fuelled public anxiety.

Despite the pushback, the reforms remain scheduled to begin on January 1, 2026, pending the outcome of the House investigation.

December 19, 2025
Nigeria’s new tax laws explained: what changes in 2026
Nigeria will begin implementing a new set of tax laws from January 1, 2026, marking one of the most sweeping reforms of the country’s tax system in decades. The Federal Government says the changes aim to simplify taxes, widen the tax base and reduce pressure on low-income earners and businesses.

The reforms were signed into law by President Bola Tinubu in June 2025 and are backed by the Nigerian Tax Administration Act and related legislation.

What is the government trying to achieve?

Officials say the focus is not to raise taxes but to improve compliance and fairness. Nigeria’s tax-to-GDP ratio has already risen to about 13.5 per cent, up from below 10 per cent, and is expected to improve further through better enforcement rather than higher rates.

According to the Presidential Committee on Fiscal Policy and Tax Reforms, the new system is designed to cut overlapping taxes, remove outdated levies and make payment easier for individuals and businesses.

Key changes Nigerians should know

From 2026, all taxable persons will be required to have a Tax Identification Number to operate bank accounts. Taxable persons are those who earn income through employment, business or other economic activities. Students and dependants without income are exempt.

Company Income Tax is expected to fall from 30 per cent to 25 per cent, while several small taxes and levies will be merged into fewer, clearer charges. Minimum tax on company turnover will be removed.

There are also incentives for investors, including capital gains tax exemptions for retail investors, pension funds and certain reinvestments. Stamp duties on stock transfers will be scrapped, and input VAT credits will apply to assets and overheads.

How households and businesses are affected

Low-income earners will enjoy exemptions, while middle-income earners will pay reduced rates. VAT exemptions and zero-rating will apply to key items. Businesses are expected to benefit from lower withholding taxes, faster refunds and clearer rules.

A new Tax Ombud will act as an independent body to handle complaints and protect taxpayers from unfair treatment.

Timeline of the reforms
- June 2025: President Tinubu signs new tax laws
- 2025: Public engagement and preparation by tax authorities
- January 1, 2026: Full implementation begins
Frequently asked questions

Will bank accounts be frozen without a tax ID?
Taxable persons without a tax ID may face restrictions, but existing account holders with valid TINs do not need to re-register.

Is Nigeria increasing taxes?
No. The reforms focus on simplifying taxes and expanding compliance, not raising rates.

Do foreign investors need a tax ID?
Foreign investors are largely exempt from TIN requirements to ease investment.

The government says the reforms are meant to build a simpler, fairer and more competitive tax system for Nigeria.
December 13, 2025
Nigeria’s new tax rules explained: key questions and answers

As Nigeria prepares to roll out major tax reforms from January 1, 2026, questions remain about who must comply, what changes are coming, and who benefits. Here is a clear guide to the new tax rules, based on official explanations from the Presidential Committee on Fiscal Policy and Tax Reforms.

What is changing with Tax Identification Numbers?

From January 1, 2026, every taxable Nigerian must have a Tax Identification Number to operate a bank account. This requirement is backed by Section 4 of the Nigerian Tax Administration Act.

Taxable persons are those who earn income through business, trade, employment, or other economic activity. Banks will be required to request a tax ID from such individuals and entities.

Students and dependants who do not earn income are exempt.

Will existing bank accounts be restricted?

Accounts owned by taxable persons without a tax ID may face restrictions in the future. However, income earners and businesses that already have a Taxpayer Identification Number do not need to register again.

The policy has existed since the Finance Act of 2020, but the new law provides a clear legal framework for enforcement.

Is Nigeria increasing taxes under the new regime?

No. President Bola Tinubu has said the reforms are not designed to raise the tax burden but to expand the tax base and provide relief to low-income earners.

Nigeria’s tax-to-GDP ratio has risen to 13.5 percent and is expected to increase modestly under the new system, largely through better compliance.

What incentives are included in the new tax laws?

The reforms introduce wide-ranging incentives. These include capital gains tax exemptions for retail investors, pension funds, re-investment, mergers and acquisitions, and real estate investment trusts.

There is also stamp duty exemption on stock transfers, input VAT credits on assets and overheads, and a planned reduction in company income tax from 30 percent to 25 percent.

How do businesses and households benefit?

Businesses will see lower risks through the removal of minimum tax on turnover, harmonised levies, faster refunds, and reduced withholding tax. A Tax Ombud has also been created to protect taxpayers.

Households will benefit from exemptions for low-income earners, reduced rates for middle-income earners, VAT relief on essentials, and incentives for small businesses and investment income.

December 13, 2025
Breaking: FG Suspends 15% Import Duty on Petrol and Diesel

The Federal Government has suspended the implementation of the 15 percent import duty on premium motor spirit (petrol) and automotive gas oil (diesel) earlier approved to support local refining.

In a statement on Thursday, George Ene-Ita, spokesperson for the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), said the directive is no longer in effect. He assured Nigerians that there is adequate fuel supply nationwide and advised against panic buying or hoarding.

“It should also be noted that the implementation of the 15 percent ad valorem import duty on imported premium motor spirit and diesel is no longer in view,” the statement read.

The NMDPRA said both local refineries and importers are maintaining sufficient stock levels to ensure steady supply during the current period of high demand. It warned marketers against any form of price manipulation or non-market reflective increases, pledging strict regulatory oversight to prevent disruptions in fuel distribution.

“The Authority will continue to closely monitor the supply situation and take appropriate regulatory measures to prevent disruption of supply and distribution of petroleum products across the country,” Ene-Ita said.

The agency also reaffirmed its commitment to ensuring energy security, acknowledging the efforts of stakeholders in maintaining stable operations in the midstream and downstream sectors.

Last month, President Bola Tinubu had approved the 15 percent import duty to encourage local refining, particularly in support of Dangote Refinery. However, the policy drew mixed reactions from economists and industry stakeholders.

While some supported the duty as an incentive for domestic production, others warned that it would raise fuel prices and deepen economic hardship for Nigerians.

With the latest decision, the government appears to have bowed to public pressure, prioritising fuel affordability and supply stability over immediate protectionist measures.

November 13, 2025
New Tax Laws Exempt Low-Income Earners, Support Small Businesses

Nigerians earning less than ₦250,000 per month will no longer pay personal income tax under the newly signed tax reform laws, the federal government has announced.

Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, disclosed this on Thursday during an interview on Channels Television’s Politics Today, shortly after President Bola Tinubu signed four major tax bills into law.

According to Oyedele, the exemption targets low-income households, now officially classified as poor. “More than one-third of workers in both the public and private sectors will no longer be subject to PAYE,” he said.

The reforms also ease tax compliance for small and micro businesses. Such enterprises are now exempt from corporate income tax, VAT, and withholding tax, and will no longer be required to deduct PAYE for their employees.

Additionally, a new zero-rated VAT structure removes taxes from essential goods and services, including food, education, healthcare, transportation, and housing—items that account for over 80% of household spending. “We should see prices of these essentials come down,” Oyedele added.

Executive Chairman of the Nigerian Revenue Service, Zacch Adedeji, confirmed that the reforms will take effect on January 1, 2026, to allow adequate time for implementation, stakeholder education, and system upgrades.

Oyedele further explained that a digitised system will enhance tax transparency and reduce evasion by collecting data such as National Identity Numbers, phone numbers, and bank information.

“This is about plugging leaks, not raising taxes,” he said. “We aim to close Nigeria’s 70% tax gap by targeting high-income earners who have avoided taxes for too long.”

He described the reforms as pro-people, efficiency-driven, and growth-focused.

June 27, 2025
Tinubu Signs Tax Reform Bills into Law

President Bola Tinubu has signed into law four landmark tax reform bills aimed at overhauling Nigeria’s fiscal and revenue systems. The signing took place on Thursday at the Aso Rock Presidential Villa, Abuja, at about 3:20 p.m.

The new laws are: the Nigeria Tax Bill (Ease of Doing Business), the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill. The bills were passed by the National Assembly after extensive consultations with stakeholders.

Presidential aide Bayo Onanuga said the reforms are expected to boost revenue generation, improve the business environment, and attract both local and foreign investment.

One of the bills—the Nigeria Tax Bill—seeks to harmonise the country’s fragmented tax laws to reduce duplication, ease compliance, and create a more predictable tax regime.

The Nigeria Tax Administration Bill establishes a uniform legal framework for tax operations at the federal, state, and local levels.

The Nigeria Revenue Service (Establishment) Bill repeals the Federal Inland Revenue Service Act and creates a more autonomous, performance-based agency to handle both tax and non-tax revenues. It also introduces new accountability and transparency measures.

The fourth legislation, the Joint Revenue Board (Establishment) Bill, sets up a formal structure for inter-governmental cooperation on revenue matters. It includes provisions for a Tax Appeal Tribunal and an Office of the Tax Ombudsman to improve taxpayer protection and oversight.

The signing ceremony was attended by the Senate President, House Speaker, key legislative leaders, several governors, and ministers, including the Minister of Finance, Wale Edun, and Attorney General Lateef Fagbemi.

June 26, 2025
Tinubu to Sign Tax Bills to Overhaul Nigeria’s Revenue System

President Bola Tinubu will on Thursday sign into law four major tax reform bills aimed at modernising and streamlining Nigeria’s fiscal and revenue framework, the Presidency has announced.

The bills—Nigeria Tax Bill, Nigeria Tax Administration Bill, Nigeria Revenue Service (Establishment) Bill, and Joint Revenue Board (Establishment) Bill—were recently passed by the National Assembly following extensive consultations with stakeholders and interest groups.

Special Adviser to the President on Information and Strategy, Bayo Onanuga, confirmed the development in a statement on Wednesday evening titled ‘President Tinubu signs four tax bills into law tomorrow’.

“These new tax laws are expected to significantly transform tax administration in the country, leading to increased revenue generation, an improved business environment, and enhanced domestic and foreign investment,” Onanuga stated.

The signing ceremony at the Presidential Villa, Abuja, will be witnessed by key government figures, including the Senate President, Speaker of the House of Representatives, majority leaders of both chambers, and finance committee chairs. Also expected are the Chairman of the Nigeria Governors’ Forum, Governor AbdulRahman AbdulRazaq; Chairman of the Progressives Governors Forum, Governor Hope Uzodinma; Finance Minister Wale Edun; and Attorney General Lateef Fagbemi.

Among the reforms:

1. The Nigeria Tax Bill aims to consolidate fragmented tax statutes, reduce duplication, and streamline taxes to promote ease of doing business and reduce compliance burdens.

2. The Nigeria Tax Administration Bill seeks to establish a unified legal and operational framework for tax collection across all tiers of government.

3. The Nigeria Revenue Service (Establishment) Bill will replace the Federal Inland Revenue Service Act with a more autonomous and performance-oriented Nigeria Revenue Service, empowered to collect both tax and non-tax revenues.

4. The Joint Revenue Board (Establishment) Bill creates a formal governance structure for intergovernmental revenue cooperation and introduces key oversight institutions, including a Tax Appeal Tribunal and a Tax Ombudsman.

June 25, 2025