Commercial banks in Nigeria will now 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 to enhance tax monitoring.
This measure aligns with the federal government’s new tax administration framework, which takes effect on January 1, 2026, according to Mr. Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee.
Speaking at a media workshop on the new consolidated tax laws in Lagos, Oyedele explained that the threshold for mandatory reporting has been increased from N10 million to N25 million per quarter, equivalent to roughly N100 million annually, before any reporting obligation is triggered.
He clarified that banks will not report all transactions. Only accounts meeting the turnover threshold will be monitored for compliance and proper tax remittance. Additionally, all taxable Nigerians are required to provide a Tax Identification Number (TIN) when opening or operating accounts for business purposes, as stipulated by Section 4 of the Nigerian Tax Administration Act.
Exemptions apply to students and dependents, who are not required to provide TINs to maintain bank accounts.
Oyedele also reassured the public that banks will not debit customers’ accounts to settle tax obligations, dismissing circulating claims as “false, dangerous, and capable of destabilising the economy.”
“Let me be clear: no government agency—including FIRS or the Central Bank of Nigeria—has the authority to withdraw funds directly from your account,” Oyedele said.
“Whether you have N50,000 or N50 million, your money is safe. The government cannot access your funds without due judicial process.”
He explained that the confusion stemmed from the consolidation of Nigeria’s major tax statutes into a single code, which some misinterpreted as granting new enforcement powers. Even in extreme cases of significant tax arrears, the authorities must assess liabilities, notify taxpayers, allow objections, and obtain a court order before funds can be recovered. Oyedele cited a past attempt under former FIRS Chairman Babatunde Fowler to impose post-no-debit orders, which failed and caused unnecessary panic.
“Rushing to withdraw money in fear would harm the economy,” he warned, urging Nigerians to remain calm and educate others about the law.
The objective of the reforms is to simplify tax compliance, broaden the tax net, and reduce the burden on households and small businesses. The reforms are encapsulated in the Tax Reform Bills, signed into law on June 26, 2025, by President Bola Tinubu. These include:
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Nigeria Tax Act (NTA)
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Nigeria Tax Administration Act (NTAA)
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Nigeria Revenue Service Act (NRSA)
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Joint Revenue Board Act (JRBA)
Collectively, the Acts aim to modernise Nigeria’s tax system, boost revenue, improve the business environment, and enhance tax administration across all levels of government.
Key highlights include:
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Exemption from income tax for individuals earning N800,000 or less annually.
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Higher income earners taxed at rates up to 25%.
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Tax exemption on compensation for loss of employment or injury raised from N10 million to N50 million.
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Establishment of a Tax Ombudsman Office to advocate for taxpayers and independently resolve complaints related to taxes, levies, duties, or similar regulatory charges.
