Echotitbits – Nigeria News

Tag: FIRS

  • Capital Gains Tax Collections Hit Historic ₦522 Billion Milestone

    Capital Gains Tax Collections Hit Historic ₦522 Billion Milestone

    Figures cited by The Punch reveal that Nigeria’s Capital Gains Tax (CGT) revenue reached an unprecedented ₦522 billion in the 2025 fiscal year. This surge represents a significant leap in non-oil tax revenue, reflecting the government’s aggressive drive to expand the tax base and improve compliance across the financial and real estate sectors. The record-breaking figure is being hailed by fiscal authorities as a sign of deepening economic formalization.
    The growth is largely attributed to the recovery of the Nigerian Exchange (NGX) and a flurry of high-value property transactions in major urban centers like Lagos and Abuja. Additionally, the Federal Inland Revenue Service (FIRS) has implemented more robust digital tracking mechanisms to ensure that gains from the disposal of assets are accurately captured and taxed.
    Despite the impressive numbers, some economic analysts express concern that the increased tax burden could deter long-term investment. However, government officials maintain that the revenue is essential for funding critical infrastructure projects and reducing the national budget deficit.
    Validating these figures, Leadership reported that the FIRS is looking to further automate the CGT collection process in 2026. A tax consultant quoted in Vanguard remarked, “The ₦522 billion mark shows that the government is finally looking beyond traditional sectors for revenue.” Furthermore, Daily Post cited a government spokesperson who noted, “This milestone is a testament to the effectiveness of recent fiscal reforms aimed at achieving a sustainable debt-to-revenue ratio.”
    Echotitbits take: This revenue spike is a double-edged sword. While it helps the government’s liquidity, it may cool down the heated real estate market. Watch for potential pushback from the private sector as the FIRS looks to tighten the net on digital asset gains next.
    Source: The Punch – https://punchng.com/capital-gains-tax-jumps-429-to-n12-18bn/, and February 15, 2026
    Photo credit: The Punch

  • New 2026 Tax Laws Take Effect: Zero Corporate Tax for Small Businesses

    New 2026 Tax Laws Take Effect: Zero Corporate Tax for Small Businesses

    According to Bloomberg Tax and local reporting by Kuda on February 14, 2026, Nigeria’s comprehensive tax reforms have officially entered their implementation phase, significantly altering the landscape for small and medium enterprises (SMEs). The new framework stipulates that businesses with an annual turnover below ₦50 million are now exempt from paying corporate income tax, a move aimed at stimulating local production and entrepreneurship.
    In addition to corporate tax relief, the personal income tax threshold has been raised to ₦800,000 annually, providing a breather for low-income earners. The law also introduces a 4% development levy for larger corporations while exempting those earning less than ₦100 million. These changes represent the most significant overhaul of the Nigerian tax system in decades, focusing on “taxing income, not capital.”
    Validation from Premium Times and Tribune Online indicates that the Federal Inland Revenue Service (FIRS) has already begun sensitizing businesses on the new rules. Premium Times noted that “the reforms aim to formalize the informal sector,” while Tribune Online quoted a tax consultant: “The zero-tax policy for SMEs is a game-changer for the 2026 fiscal year.”
    Echotitbits take: This is a pro-growth policy that could significantly reduce the cost of doing business in Nigeria. The challenge will be the FIRS’s ability to prevent larger firms from splitting into smaller entities to exploit the ₦50 million exemption threshold.
    Source: Kuda – https://kuda.com/blog/nigeria-2026-tax-reform-what-it-means-for-your-money-and-business/, February 14, 2026
    Photo credit: Kuda

  • National VAT Collections Hit Record N8.61 Trillion as Tax Reforms Yield Fruit

    National VAT Collections Hit Record N8.61 Trillion as Tax Reforms Yield Fruit

    Figures cited by The Punch show that Nigeria’s Value Added Tax (VAT) revenue experienced a historic surge, reaching N8.61 trillion for the 2025 fiscal year. This performance, reported on February 1st, 2026, is being attributed to the aggressive automation of tax collection systems and the broadening of the tax base to include more informal sector participants and digital service providers.

    In a report by The Sun, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, noted that the focus has shifted from increasing tax rates to improving the efficiency of collection. “The 2025 figures are a testament to what happens when you simplify the tax code and eliminate multiple levies that previously stifled small businesses,” Oyedele was quoted as saying.

    According to Vanguard News, the Federal Inland Revenue Service (FIRS) has surpassed its revised targets, providing the government with much-needed fiscal space to service debts and fund infrastructure. The report quoted a financial analyst who stated: “While the revenue growth is impressive, the government must now ensure that these funds are transparently utilized to mitigate the impact of inflation on the average citizen.”

    Echotitbits take: This taxation milestone suggests that the government’s fiscal reforms are finally gaining traction. For businesses, the “tax harmonization” agenda is the real story to watch; if the government successfully collapses hundreds of taxes into a few single digits, it could trigger a significant boom in the SME sector by 2027.

    Source: The Punch – https://punchng.com/vat-collections-surged-to-n8-61tn-in-2025/, February 1, 2026

    Photo credit: The Punch

  • Nigerian Banks to Enforce Mandatory Tax ID for All Account Operations

    Nigerian Banks to Enforce Mandatory Tax ID for All Account Operations

    In an update published by Channels TV, Nigerian commercial banks have begun the full enforcement of mandatory Tax Identification Numbers (TIN) for both new and existing account holders. This policy, which stems from the new tax reforms, requires every individual and business to link their bank accounts with their tax records. Failure to comply will result in restricted access to banking services, including transfers and withdrawals, as the government seeks to widen the tax net and track illicit financial flows.

    The Central Bank of Nigeria (CBN) and the FIRS have collaborated on a unified platform that allows for real-time verification of tax IDs. Bank officials have urged customers to update their records immediately to avoid being locked out of the financial system. The policy is also aimed at identifying high-net-worth individuals who have previously evaded taxes while moving large sums of money through the banking sector.

    The enforcement was also documented by The Nation and Vanguard. The Nation reported that “banks have seen a surge in customers visiting branches to link their TINs,” while Vanguard noted that “the move is expected to significantly boost the government’s non-oil revenue.”

    Echotitbits take:

    This is the “no-escape” phase of Nigeria’s tax reform. By linking TIN to bank accounts, the government can now monitor income versus lifestyle in real-time. Watch for a rise in fintech usage and “under-the-mattress” cash holdings as some small businesses try to avoid the digital tax footprint.

    Source: Facebook – https://web.facebook.com/ReportYourself/posts/nigerian-govt-set-make-tax-identification-number-mandatory-for-bank-accounts-fro/1421006479380864/?_rdc=1&_rdr#, January 31, 2026

    Photo credit: Facebook

  • New Tax Law Offers 50 Exemptions and Reliefs for Low-Income Earners

    New Tax Law Offers 50 Exemptions and Reliefs for Low-Income Earners

    Figures cited by The Punch show that the newly implemented tax administration framework in Nigeria includes over 50 specific exemptions and reliefs aimed at easing the burden on small businesses and low-income earners. Effective from January 1, 2026, the law exempts individuals earning the national minimum wage or less from Personal Income Tax (PAYE). Additionally, small-scale businesses with an annual gross income below a certain threshold will see significant reductions in their tax liabilities.

    This legislative move is part of the government’s broader strategy to stimulate the domestic economy by increasing the disposable income of the average Nigerian. The tax reforms also provide for reduced rates for middle-income earners and introduce “gift exemptions” to promote social welfare. Government officials believe that by simplifying the tax code and offering these reliefs, they can improve tax compliance across the informal sector.

    Leadership Newspaper highlighted the impact on workers, quoting Taiwo Oyedele who stated that the “PAYE cut increases workers’ take-home pay in January,” providing much-needed relief amid inflation. Daily Post added that “the new tax regime is expected to foster a more business-friendly environment,” especially for the burgeoning tech and creative sectors in Nigeria.

    Echotitbits take: This is a rare “pro-poor” fiscal policy that could actually move the needle on consumer spending. Watch for how the various state governments (who collect PAYE) react to the potential dip in their internally generated revenue (IGR).

    Source: The Punch – https://punchng.com/50-exemptions-and-reliefs-in-new-tax-administration-2/  January 28, 2026

    Photo Credit: Brickmans Law

  • Nigerian Government Unveils Sweeping Fiscal Reforms to Stimulate Small Businesses

    Nigerian Government Unveils Sweeping Fiscal Reforms to Stimulate Small Businesses

    The Federal Government has introduced a new package of tax incentives and fiscal waivers designed to ease the burden on Small and Medium Enterprises (SMEs), especially businesses with annual turnover below N50 million.

    The policy, approved at the Federal Executive Council meeting, includes a two-year tax holiday for tech startups and agribusinesses, along with simplified filing to curb multiple taxation and encourage informal businesses to adopt formal channels.

    Officials also disclosed a low-interest credit facility to be managed by the Bank of Industry, positioning the reforms as a jobs-and-production strategy for a manufacturing chain strained by high operating costs.

    Echotitbits take: These reforms are a direct response to rising inflation and the high cost of doing business. While the tax holiday is welcome, success will hinge on eliminating the ‘hidden taxes’ of weak infrastructure and logistics bottlenecks. Watch for implementation guidelines from FIRS in the coming weeks.
    Source: Kuda  – https://kuda.com/blog/nigeria-2026-tax-reform-what-it-means-for-your-money-and-business/ 2026-01-27

    Photo Credit: Kuda

  • Public Anxiety Rises Over New Tax Compliance Pathways

    Public Anxiety Rises Over New Tax Compliance Pathways

    Public Anxiety Rises Over New Tax Compliance Pathways

    As 2026 tax laws take effect, small businesses worry about digital compliance requirements while civil society groups call for phased, humane enforcement.

    Further reporting across multiple outlets indicates the development is drawing heightened attention, with stakeholders watching for next steps from relevant authorities and institutions.

    Echotitbits take: The government’s push for a broader tax base is economically sound but politically risky. To avoid social unrest, the FIRS must demonstrate that tax revenues are being directly channeled into visible infrastructure like the ‘Ward Development Programme’.

    Source: The Guardian – https://guardian.ng/news/anxiety-mistrust-cloud-nigerias-tax-reform-promises-benefits/ (2026-01-21)

    Photo credit: The Guardian

    2026-01-21 18:00:00

     

     

  • New Tax Regime Exempts Nigerians Earning Below ₦800,000 Annually

    New Tax Regime Exempts Nigerians Earning Below ₦800,000 Annually

    According to Cowrywise Financial Blog, the new Nigerian Tax Act has officially come into full effect as of January 1, 2026, introducing a 0% tax rate for individuals earning ₦800,000 or less per year. This reform is part of a broader strategy to provide ‘social cushioning’ for low-income earners while progressively increasing the tax burden on high-net-worth individuals and large corporations. The new brackets peak at 25% for those earning over ₦150 million.

    The act also introduces significant relief for small businesses, with the ‘Development Levy’ now only applying to companies with a turnover exceeding ₦100 million. Additionally, the threshold for tax-exempt redundancy pay has been increased from ₦10 million to ₦50 million, providing a larger safety net for workers facing job losses in a fluctuating economy.

    Validating reports from Moniepoint and The Punch emphasize the focus on compliance. Moniepoint warned that ‘unregistered businesses will struggle to operate on digital platforms under the new code,’ while The Punch quoted the FIRS Chairman: ‘Our goal is a broader base, not necessarily higher rates for the common man.’

    Echotitbits take: This is the most significant overhaul of personal income tax in decades. While the ₦800k exemption is a win for the poor, the real challenge is the ‘informal sector’ capture. Watch for a massive push by the FIRS to link Bank Verification Numbers (BVN) and National Identity Numbers (NIN) to new ‘Tax IDs’ for petty traders this quarter.
    Source: TheCable – https://www.thecable.ng/key-concerns-and-benefits-as-the-new-tax-laws-take-effect/ January 5, 2026

    Photo Credit: TheCable

  • Reps release certified tax-law copies to end confusion as reforms roll out

    Reps release certified tax-law copies to end confusion as reforms roll out

    Figures cited by Punch show Nigeria’s House of Representatives has released certified true copies (CTCs) of the newly passed tax laws, aiming to resolve discrepancies and improve clarity for implementation.

    Lawmakers say the move is meant to align what stakeholders are seeing in circulation with the versions formally passed, so agencies, businesses, and professional bodies can reference the same texts.

    The Nation reported that federal lawmakers released the CTCs to “address discrepancy,” while THISDAY similarly reported the chamber’s push to ensure stakeholders rely on a single, authoritative version of the reforms.

    For taxpayers and businesses, the next test is whether clarified texts translate into consistent regulations, guidance notes, and enforcement without sudden interpretive shocks.

    Echotitbits take: For taxpayers and businesses, the next test is whether clarified texts translate into consistent regulations, guidance notes, and enforcement without sudden interpretive shocks.

    Source: Arise — January 4, 2026 (https://www.arise.tv/house-releases-certified-tax-acts-to-clarify-controversy-restore-public-confidence/)

    Arise January 4, 2026

    Photo Credit: Arise