The Digest:
The Nigerian government has implemented a stringent requirement for banks and financial institutions. From now on, any individual with transactions exceeding N25 million monthly, or firms with over N100 million, must be reported to the tax authorities. These measures aim to tighten anti-money laundering efforts and improve tax collection.
Key Points:
- Financial institutions are required to report large transactions to the FIRS
- Monthly reports for individuals with N25m+ and firms with N100m+ transactions
- Banks must submit quarterly returns starting in 2026
- Nigeria's Financial Action Task Force (FATF) grey list spurs stricter measures
- The FIRS is to be renamed the Nigeria Revenue Service (NRS) by 2026
- New law counters illicit financial flows, strengthens anti-money laundering
- The legal framework aims to improve Nigeria’s tax collection systems
This new regulation, effective in 2026, reflects Nigeria’s commitment to combat money laundering and improve fiscal discipline, with strict monthly reporting obligations now in place for individuals and firms exceeding specified transaction thresholds.
Sources: Premium Times, Channels TV, TheCable.
