It’s crunch time for millions of Nigerians as the March 31 tax deadline hits—with many still in the dark about new rules that could cost them big.
Under the Nigeria Tax Act 2025, every income earner is now required to file an annual tax return—even workers whose taxes are already deducted from their salaries. But findings show a huge number of taxpayers have no idea this new rule exists.
For years, employees relied on the Pay-As-You-Earn (PAYE) system, where employers handled tax deductions. Now, that’s no longer enough. Workers must file returns themselves to stay compliant and to secure a Tax Clearance Certificate (TCC), a key document needed for loans, visas, and government deals.
Before filing, taxpayers must get a Tax Identification Number (TIN), which can be generated using their National Identification Number (NIN) or obtained from tax authorities. They are also expected to submit documents like payslips, bank statements, and records of any extra income—from side hustles to business earnings.
And it doesn’t stop there.
Nigerians must declare ALL income sources, including salaries, freelance work, business profits, dividends, interest, and even foreign earnings. Missing anything could raise red flags.
Returns can be filed online through state tax portals or submitted physically—but it must be done in the taxpayer’s state of residence.
Even salary earners are not off the hook. If you changed jobs, have a side hustle, or earn money outside your main salary, you must file.
Fail to comply, and the penalties are steep.
Defaulters face an instant ₦100,000 fine for the first month—and ₦50,000 for every additional month of delay. Worse still, authorities can go after your money directly through your bank, tenants, or business partners if you refuse to pay.
With the deadline now here, tax officials are expected to step up enforcement, leaving millions exposed to fines, stress, and possible legal trouble.
For many Nigerians, what they don’t know today could cost them dearly tomorrow.
