Commercial banks will be required to file quarterly reports on accounts with turnovers of ₦25 million and above to the Federal Inland Revenue Service (FIRS) and other relevant authorities under Nigeria’s new tax administration framework, which takes effect on January 1, 2026.
The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, disclosed this in Lagos while addressing journalists at a media workshop on the recently consolidated tax laws. He explained that the reporting threshold has been raised from ₦10 million to ₦25 million per quarter, a level he said translates to nearly ₦100 million annually before any account is flagged for reporting.
Oyedele clarified that the policy does not authorise banks to monitor or report all customer transactions. Rather, only accounts that meet the turnover threshold will be reported for tax compliance purposes. He noted that accounts used for business activities are already required to be linked to a Tax Identification Number (TIN) under existing laws, adding that the new framework simply strengthens enforcement.
He further stated that banks are now mandated to request TINs from all taxable individuals, in line with the Nigerian Tax Administration Act, which makes tax identification compulsory for those liable to tax. However, students and dependents are exempt and will not be required to present a TIN to operate bank accounts.
Addressing public concerns, Oyedele dismissed claims that banks would begin debiting customers’ accounts for tax defaults, describing such reports as misleading and potentially harmful. He stressed that no government agency, including FIRS or the Central Bank of Nigeria, has the authority to withdraw funds directly from individuals’ bank accounts without due process.
According to him, the only lawful means of recovering unpaid taxes is through a court-ordered garnishee process, which involves assessment, notification, opportunity for objection and a judicial ruling. He noted that this procedure is rarely used and does not permit arbitrary deductions.
Oyedele warned that misinformation surrounding the reforms could fuel panic and trigger unnecessary withdrawals, posing risks to economic stability. He urged Nigerians to disregard false narratives and seek accurate information on the reforms.
He said the new tax laws are designed to simplify compliance, expand the tax base and reduce pressure on low-income earners and small businesses. The Tax Reform Bills were signed into law by President Bola Tinubu on June 26, 2025.
The new framework comprises the Nigeria Tax Act, Nigeria Tax Administration Act, Nigeria Revenue Service Act and the Joint Revenue Board Act. Among other provisions, the reforms exempt individuals earning ₦800,000 or less annually from income tax, introduce progressive tax rates of up to 25 per cent for higher earners, raise tax-free compensation thresholds, and establish a Tax Ombuds office to handle taxpayer complaints.