In just 11 days, a new era of tax reform is set to begin in Nigeria, and you might be wondering: Will my bank account be blocked if I don't have a Tax Identification Number (TIN) by January 1, 2026? Let's dive into the details and separate fact from fiction. Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr. Taiwo Oyedele, has addressed widespread concerns, assuring Nigerians that the upcoming tax reforms are not designed to burden citizens with higher tax rates or arbitrary revenue targets.
The core of the matter, according to Oyedele, is not just about rates and revenue, but about rebuilding trust between citizens and the state. "Tax reform is not just about loss, rates, or revenue generation. At its core, it’s about the social contract of trust between citizens and the state. People ask simple but powerful questions: Why should I pay tax? How is my money being spent? Is the system fair, such that everyone pays their fair share or is it just me paying?" he said.
While the government cannot address these questions alone, Oyedele emphasizes the need for credible, independent, and informed media engagement. Tax policy, he notes, is particularly vulnerable to misinformation due to its direct impact on livelihoods.
"A credible tax system requires fair laws, honest administration, voluntary compliance, and vigilant public scrutiny of how taxpayers’ money is spent. On our part, we remain committed to reforms that are fair, inclusive, and worthy of public trust," Oyedele assured.
With this in mind, the committee has addressed frequently asked questions about the Nigeria Tax Act (NTA) 2025, which becomes operational in 2026. Here are some key points to consider:
Who does the Nigerian Tax Law apply to? It applies to all individuals earning income in Nigeria, including workers, traders, content creators, influencers, and remote workers. It also applies to Nigerians earning income abroad if they are tax residents in Nigeria.
Will transfers and deposits into my bank account be taxed? No. Moving money through POS, bank transfers, deposits, or withdrawals is not a taxable event. Only income earned is taxed.
Will the money I keep in my bank account be taxed from 2026? No. Simply holding money in a bank account is not taxable. Only income such as salary, business profit, or interest is taxed.
Do I pay tax if I am a student with no job? No. If you have no taxable income, you won’t pay tax.
Will tax authorities monitor bank accounts more closely? Yes. Authorities will find it easier to track compliance, but bank balances themselves will not be taxed; only profits and income will be.
Will I pay tax on loans borrowed from Fairmoney or other lenders? No. Loans are not income and are therefore not taxable. However, the interest earned by the lender will be taxed.
Do I pay personal or company income tax if I run a one-man business? If registered as a business name (enterprise), you pay Personal Income Tax (PIT). If registered as a limited liability company, you pay Company Income Tax (CIT).
Will I pay tax if I sell shares and make a profit? No, provided the value of shares sold does not exceed N150 million and the gain is not above N10 million. Gains above this threshold become taxable.
Will my pension be taxed if I am a pensioner? No. Approved pension and retirement benefits remain tax-exempt.
Are military salaries taxable? No. Salaries of military officers are now exempt from tax.
Do creatives still enjoy tax exemptions on foreign income? No. Authors, musicians, sportsmen, and other creatives must now pay Nigerian tax on income earned both within and outside Nigeria.
Are crypto gains taxable? Yes. Profits from crypto assets, NFTs, and other digital assets are taxable.
Who is exempt from Personal Income Tax? Individuals earning the national minimum wage or less, and those earning below N800,000 annually.
New Progressive Tax Bands (From 2026)
First N800,000 @ 0%
Next N2.2 million @ 15%
Next N9 million @ 18%
Next N13 million @ 21%
Next N25 million @ 23%
Above N50 million @ 25%Will severance packages be taxed? Severance pay of N50 million or less is tax-free. Any excess above N50 million will be taxed using the progressive tax bands.
Will Nigeria tax dividends or rent earned abroad? No. Dividends, interest, rent, and royalties earned abroad are exempt if repatriated to Nigeria through approved banking channels.
Are disability pensions for injured soldiers taxable? No. Disability pensions for members of the armed forces are completely tax-exempt.
Will agricultural companies be taxed? No. Agricultural companies engaged in crop production, livestock, forestry, dairy, or cocoa processing will enjoy a five-year tax holiday from the commencement of operations.
Is income from Federal or State Government bonds taxable? No. All government bonds are tax-exempt.
What is rent relief under the new law? From 2026, individuals can claim rent relief of 20% of annual rent, capped at N500,000. Actual rent must be declared and verified.
Will I be better off if I earn N6 million yearly? Under the new law, tax payable drops from N896,000 to N780,000, resulting in savings of N116,000 and higher take-home pay.
Will my company pay tax if its turnover is below N50 million? No. Small companies with a turnover below N50 million are exempt.
As a remote worker in Nigeria for an international organization, will I pay tax? Yes, if your income is exempt in the organization’s home country under a treaty or diplomatic arrangement.
Will a foreigner earning a salary in Nigeria be taxed? No, if the employer is a start-up or operates in tech or creative industries, and the income is already taxed in the foreigner’s country of residence.
Now, here's where it gets controversial... Will you be denied access to your bank account if you don't have a TIN by January 1? The answer is no. Any person without a Tax Identification Number (TIN) can still have access to their bank account, but will be asked to supply it as time goes on. However, those who want to open a new bank account without a TIN may not be allowed.
The reforms are structured to protect low-income earners, expand fairness, and improve voluntary compliance, while ensuring that Nigeria’s tax system supports growth, inclusion, and accountability. But will these changes be enough to address the concerns of the public? It's up to you to decide. What do you think? Will the new tax reforms live up to the expectations of Nigerians? Share your thoughts in the comments below!
