The Digest:
With 11 days until Nigeria's new tax regime takes effect, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has moved to calm public anxiety, clarifying that bank accounts will not be blocked from January 1, 2026, solely due to the lack of a Tax Identification Number (TIN). He emphasized that the reforms are designed to rebuild trust, ensure fairness, and protect low-income earners, rather than impose punitive measures.
Key Points:
- Oyedele stated existing accounts without a TIN will remain accessible, though a TIN will be requested over time
- New accounts may require a TIN for opening to encourage compliance
- The reform introduces progressive tax bands, exempting incomes below ₦800,000 annually
- Bank transfers, deposits, and account balances are not taxable events
- Loans are not taxed, though lenders’ interest income will be
- Military salaries, approved pensions, and disability benefits remain tax-exempt
- Small businesses with a turnover below ₦50 million are exempt from company tax
- Agricultural companies get a five-year tax holiday from the start of operations
- Crypto gains and foreign income of creatives are now taxable
- Rent relief of up to ₦500,000 can be claimed annually from 2026
Sources: Vanguard
