NEWS
Nigerian Banks to Report Accounts With ₦5 Million Monthly Transactions to Tax Authorities

Starting January 1, 2026, all Nigerian banks will be required to report customer accounts with monthly transactions of ₦5 million or more to the Federal Inland Revenue Service (FIRS) and other relevant tax authorities.
This directive is part of the 2025 Tax Reform Act, aimed at improving tax compliance, enhancing financial transparency, and expanding the country’s tax base.
The reporting requirement covers both inflows and outflows—meaning the total sum of money entering or leaving an account within a month. Once the ₦5 million threshold is reached, the bank is obligated to flag the account and send the details to tax authorities.
The measure is designed to help the government identify individuals or businesses potentially underreporting their income or evading taxes, especially within the informal sector.
Other key changes in the new tax law include:
- An increase in the personal income tax exemption from ₦500,000 to ₦800,000 annually
- Capital gains tax exemptions for the sale of primary residences
- Tax exemption on compensation payments up to ₦10 million
- A revised revenue-sharing formula for Value Added Tax (VAT) among federal, state, and local governments
While the policy is expected to boost government revenue and curb tax evasion, it has raised concerns over data privacy and the need for clear safeguards to protect customer information.
Bank customers who regularly transact ₦5 million or more in a month should be aware that their accounts will be subject to routine scrutiny by tax authorities from 2026.
Discover more from Naijanewstoday
Subscribe to get the latest posts sent to your email.
-
POLITICS5 days ago
C-Sagas UK Chapter Meets Founder in London, Reaffirms Humanitarian Vision
-
TECH7 days ago
OpenAI CEO Sam Altman Warns ChatGPT Conversations Aren’t Legally Confidential
-
NEWS5 days ago
Ikwo Noyo Clan Releases Official Timetable for 2025 Nnesweoha Festival
-
ENTERTAINMENT4 days ago
VeryDarkMan Breaks Down in Tears as He Announces Death of Popular Fish Seller
-
NEWS5 days ago
Nigerian Youth Advocate Calls Out Facebook’s Monetisation Policies
-
CAMPUS REPORTS6 days ago
VC Inaugurates Two New Residential Flats Built by AE-FUNAI Parents’ Forum
-
CAMPUS REPORTS5 days ago
Experts Urge Responsible AI And Data Use at AE-FUNAI Law Conference
-
POLITICS4 days ago
2027 Elections: We’re the Only Viable Alternative to APC, PDP Slams ADC
-
CAMPUS REPORTS6 days ago
AE-FUNAI Hosts ACSPN, Highlights Role of Artificial Intelligence in Media and Security
-
SPORTS7 days ago
Asisat Oshoala Shuts Down Retirement Rumors After WAFCON Triumph
-
NEWS6 days ago
David Umahi’s Daughter Kimberly Graduates With First Class
-
SPORTS4 days ago
Morocco Challenges Referee Call After Super Falcons’ WAFCON Triumph