11 Days to Tax Reform: Will my bank account be blocked from Jan 1, 2026 if I don’t have TIN?

By Peter Egwuatu,

Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr. Taiwo Oyedele, has allayed widespread fears among Nigerians over the impending tax reforms scheduled to take effect from January 1, 2026, insisting that the exercise is not designed to overburden citizens with higher tax rates or arbitrary revenue targets.

Speaking at the 2025 Nigeria Media Merit Award (NMMA) ceremony in Lagos last weekend, Oyedele said tax reform goes beyond rates and revenue, stressing that it is fundamentally 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.

According to him, such questions cannot be addressed by government alone, but require credible, independent and informed media engagement, noting that tax policy is particularly vulnerable to misinformation because of 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. Against this backdrop, the committee has responded to frequently asked questions by Nigerians on the Nigeria Tax Act (NTA) 2025, which becomes operational in 2026.

Key Questions and Answers on the New Tax Law

1.Which individuals does the Nigerian Tax Law apply to? It applies to all individuals who earn income in Nigeria — workers, traders, content creators, influencers, remote workers — and 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.

I am a student with no job. Do I pay tax? 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 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.

I run a one-man business. Do I pay personal or company income tax? 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).

If I sell shares and make a profit, will I pay tax? 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.

I am a pensioner. Will my pension be taxed? No. Approved pension and retirement benefits remain tax-exempt.

10. Are military salaries taxable? No. Salaries of military officers are now exempt from tax.

11.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.

12. Are crypto gains taxable? Yes. Profits from crypto assets, NFTs and other digital assets are taxable.

13. Who is exempt from Personal Income Tax? Individuals earning the national minimum wage or less, and those earning below N800,000 annually.

14. 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%

15. 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.

16. 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.

17. Are disability pensions for injured soldiers taxable? No. Disability pensions for members of the armed forces are completely tax-exempt.

18. 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.

(Vanguard)