by Nigerian News24 Correspondents
Commercial banks in Nigeria will soon be required to report accounts with a quarterly turnover of N25 million or more to the Federal Inland Revenue Service (FIRS) and other relevant agencies, under the federal government’s new tax administration framework set to take effect on January 1, 2026, the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr. Taiwo Oyedele, announced in Lagos.
Speaking at a media workshop on the new consolidated tax law, Oyedele explained that the reporting threshold has been raised from N10 million to N25 million, which equates to nearly N100 million annually before any reporting obligations are triggered.
He clarified that not all bank accounts will be monitored, emphasizing that only accounts meeting the turnover threshold will be identified for tax compliance. Oyedele also noted that, under the 2020 Finance Act, accounts used for business purposes must already be linked to a Tax Identification Number (TIN). In line with the new tax regime, banks will continue to request TINs from all taxable Nigerians, although students and dependents will be exempt.
Addressing public concerns over direct deductions from bank accounts, Oyedele assured Nigerians that no government agency, including FIRS or the Central Bank of Nigeria, can debit accounts. He described social media rumours suggesting otherwise as “false, dangerous and capable of destabilising the economy.” He stressed that only a court-ordered garnishee can authorize the recovery of unpaid taxes, a legal process that is rarely used.
Oyedele recalled a failed attempt under former FIRS Chairman Babatunde Fowler to impose post-no-debit orders on suspected tax evaders, noting that no funds were recovered, and such mistakes will not be repeated. He warned that misinformation could lead to panic withdrawals, which could harm the economy, and urged the public to educate others about the reforms.
The tax reforms, signed into law by President Bola Tinubu on June 26, 2025, include the Nigeria Tax Act (NTA), Nigeria Tax Administration Act (NTAA), Nigeria Revenue Service Act (NRSA), and the Joint Revenue Board Act (JRBA). Collectively, these laws aim to simplify compliance, broaden the tax base, boost revenue, and improve tax administration across federal, state, and local governments.
Key highlights of the new tax laws include:
- Individuals earning N800,000 or less annually are exempt from tax on income and gains.
- Higher earners will face progressive taxation of up to 25%.
- Compensation for loss of employment or injury is now exempt up to N50 million, increased from N10 million.
- Establishment of a Tax Ombudsman office to act as an independent arbiter and liaison between taxpayers and tax authorities.
Oyedele emphasized that the reforms are designed to reduce the compliance burden on households and small businesses while strengthening the overall tax system.