Nigeria’s new tax legislation will officially take effect on January 1, marking the beginning of stricter compliance rules for both salary earners and business owners across the country. The law introduces updated filing requirements, expanded tax brackets, and stronger enforcement mechanisms.
Tax authorities warn that individuals and enterprises who fail to comply may face penalties, ranging from fines to business account restrictions. The Federal Inland Revenue Service (FIRS) has also announced system upgrades to automate tracking, cross-check BVN-linked transactions, and reduce evasion.
Under the new law:
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Salary earners must ensure that their employers remit PAYE taxes accurately and promptly.
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Small and medium enterprises (SMEs) must maintain proper financial records and file annual tax returns.
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Large companies will be subject to enhanced audits and digital reporting requirements.
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Non-compliance may attract penalties, interest charges, and potential legal action.
Tax experts advise Nigerians to stay informed, keep proper documentation, and seek professional guidance to avoid sanctions. The implementation comes at a time when the government is intensifying efforts to increase revenue, cut leakages, and hold both individuals and businesses accountable.
