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The Digest:

Nigeria is set to implement a sweeping tax reform, effective in 2026, mandating banks to report all customer accounts with monthly transactions exceeding N5 million to tax authorities. This directive marks a significant Fiscal Shift aimed at enhancing transparency, improving compliance, and recalibrating the nation's revenue generation strategy.

Key Points:
  • Banks must report monthly transactions over N5 million.
  • This is part of Nigeria’s 2025 Tax Reform Act.
  • Aimed at improving compliance and financial transparency.
  • Annual income up to N800,000 is now tax-exempt.
  • Capital gains on primary residence sales are exempt.
  • New VAT distribution model favors states based on consumption.
  • Stakeholders call for data protection guidelines.
The reform balances increased financial oversight with taxpayer-friendly provisions and a new VAT model. While praised for expanding the tax base, its implementation demands clear data protection guidelines.Fiscal Shift.

Sources: Nigerian Tribune, National Orientation Agency (NOA)