James Obasi11 Days to Tax Reform: Will Your Bank Account Be Blocked Without a TIN from Jan 1, 2026?
As Nigeria counts down to the implementation of its tax reforms on January 1, 2026, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr. Taiwo Oyedele, has moved to calm public anxiety, assuring Nigerians that the new tax regime is not intended to impose higher taxes or unfair revenue targets.
Speaking at the 2025 Nigeria Media Merit Award (NMMA) ceremony in Lagos, Oyedele said the reform agenda is about more than tax rates and collections. According to him, it is fundamentally aimed at rebuilding trust between citizens and the state.
“Tax reform is not just about rates or revenue. At its core, it is about the social contract between citizens and government. People want to know: Why should I pay tax? How is my money used? Is the system fair to everyone?” he said.
Oyedele stressed that answering these concerns requires credible and informed media engagement, noting that tax issues are especially prone to misinformation because of their direct impact on people’s livelihoods. He added that a sustainable tax system must be built on fair laws, transparent administration, voluntary compliance and strong public oversight.
Against this backdrop, the committee released clarifications on frequently asked questions about the Nigeria Tax Act (NTA) 2025, which takes effect in 2026.
Key Clarifications on the New Tax Law
- The law applies to all individuals earning income in Nigeria, including workers, traders, content creators, influencers and remote workers. Nigerians earning income abroad are also covered if they are tax residents in Nigeria.
- Bank transfers, deposits, withdrawals and POS transactions are not taxable. Only income earned is taxed.
- Money kept in a bank account is not taxed; only income such as salary, business profits or interest applies.
- Students and individuals with no taxable income will not pay tax.
- Bank accounts may be monitored more closely for compliance, but balances themselves are not taxed.
- Loans are not taxable, though interest earned by lenders will be taxed.
- Sole proprietors registered as business names pay Personal Income Tax, while limited liability companies pay Company Income Tax.
- Capital gains on shares remain tax-free if the value sold does not exceed ₦150 million and gains are not above ₦10 million.
- Pensions, including disability pensions for injured soldiers, remain tax-exempt.
- Military salaries are exempt from tax.
- Profits from crypto assets, NFTs and other digital assets are taxable.
- Individuals earning the national minimum wage or less, or below ₦800,000 annually, are exempt from Personal Income Tax.
New Progressive Tax Bands (from 2026):
- First ₦800,000: 0%
- Next ₦2.2 million: 15%
- Next ₦9 million: 18%
- Next ₦13 million: 21%
- Next ₦25 million: 23%
- Above ₦50 million: 25%
- Severance pay up to ₦50 million is tax-free; amounts above this will be taxed progressively.
- Dividends, interest, rent and royalties earned abroad are exempt if repatriated through approved banking channels.
- Agricultural companies enjoy a five-year tax holiday from the start of operations.
- Federal and State Government bonds remain tax-exempt.
- From 2026, individuals can claim rent relief of 20% of annual rent, capped at ₦500,000.
- A worker earning ₦6 million annually will see tax payable drop from ₦896,000 to ₦780,000, saving ₦116,000.
- Companies with turnover below ₦50 million are exempt from Company Income Tax.
- Remote workers in Nigeria for international organisations will pay tax if their income is exempt abroad.
TIN and Bank Accounts
Oyedele clarified that Nigerians without a Tax Identification Number (TIN) will not lose access to existing bank accounts from January 1, 2026. However, they will be required to provide a TIN over time, and opening new bank accounts without a TIN may not be allowed.
He reaffirmed that the reforms are designed to protect low-income earners, promote fairness, and strengthen voluntary compliance, while positioning Nigeria’s tax system to support growth, inclusion and accountability.
