01/01/2026
Dear Nigerians,
Nigeria has entered a new phase of tax administration with the implementation of a revised tax structure, effective today January 1st, 2026. As questions arise about these changes, we've compiled these FAQs to provide clear answers and address common misconceptions about the new tax regulations.
Q1: When do the new tax laws take effect?
A: The Joint Revenue Board of Nigeria (Establishment) Act (JRBEA), 2025 and Nigeria Revenue Service (Establishment) Act (NRSEA) 2025 took effect from 26 June 2025, while the Nigeria Tax Act (NTA) and Nigeria Tax Administration Act (NTAA) will take effect on 1 January 2026.
Q2: Will deposits or transfers into my bank account be taxed?
A: No, mere deposits or transfers into your bank account are not automatically taxed. However, deposit or transfer that constitutes an income into your bank account may be reviewed for tax purposes where your income exceeds the exemption threshold for small business and companies. So, it will be good to have a clear narration on all banking transactions.
Q3: Will tax authorities now monitor my bank accounts in order to charge tax?
A: No, NTAA requires banks and financial institutions to render returns to the revenue authorities where monthly transactions exceed ₦25 million and ₦100 million for individuals and businesses respectively. However, this does not automatically translate to direct debit from your bank accounts. [Section 29, NTAA].
Q4: Does the tax authority have the power to debit my account without any form of engagement/notice?
A: No, the tax authority does not have the power to debit your bank account without any form of engagement. The law only prescribes a power of substitution which suggests that the tax authority can appoint any person to assist with the recovery of taxes due, where the taxpayer has failed to pay after series of demand notice/letter has been served. [Section 60, NTAA]
Q5: Will my bank account be closed on 1 January 2026 if I do not have a tax a taxpayer ID?
A: No, the law does not mandate banks to close your accounts where you do not have a tax ID. However, the law only requires a person engaged in banking, insurance, stock-broking or other financial services in Nigeria to ensure that every taxable person provides a Tax ID. This is not a new requirement of the law. [Section 8, NTAA]. In addition, the Nigerian Tax ID Portal has been linked to the National Identification Number (NIN) database for ease of generating and retrieving tax ID in Nigeria.
For more information about Nigeria's new tax regulation, visit https://www.firs.gov.ng. We're always committed to keeping you informed as always.
Thank you for your time.
