The deadline is March 31. Here is everything you need to know.
Nigeria’s tax system has undergone its most significant overhaul in decades. On June 26, 2025, President Tinubu signed four tax reform bills into law, and they took full effect on January 1, 2026.
The reforms consolidated more than 70 fragmented taxes into a unified system, and the Federal Inland Revenue Service has been rebranded as the Nigeria Revenue Service (NRS). The deadline to file your annual return for the 2025 tax year is March 31, 2026 and it is just eight days away!
Who Needs to File?
The short answer: almost everyone. All Nigerian residents aged 18 and above earning income from Nigerian sources are required to file personal income tax returns. This includes salaried employees, self-employed individuals, and those earning from investments, rental income, or business activities.
Even if you earned very little, you are not off the hook. Under the Nigeria Tax Act 2025, even if you earn below ₦800,000 annually and owe no tax, you must still file a Nil Return to maintain tax compliance records. As Taiwo Oyedele, chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, put it plainly: “All of us must file our returns, including those earning low income.”
What Has Changed Under the New Tax Law?
The 2025 reforms introduced several changes that directly affect what you owe and what you can claim.
Nigerians earning ₦800,000 or less annually (roughly ₦66,667 per month) now pay zero personal income tax. Progressive tax rates now range from 0% to 25% based on income brackets. The old Consolidated Relief Allowance (CRA) has been replaced by a new rent relief deduction. Techmoonshot
On rent relief: as a tenant, you are entitled to deduct 20% of your annual rent from your taxable income, subject to a maximum cap of ₦500,000. You must upload a valid rent receipt and a tenancy agreement as evidence.
One important note: for 2025 income (filed in March 2026), the old tax rates still apply. The new rates take effect from 2026 onwards.
Where and How Do You File?
Individual income tax is administered at the state level. You file in the state where you reside, regardless of where your employer is based or where your clients are located. For example, if you live in Lagos but work remotely for a firm in Abuja, you are a Lagos State taxpayer.
Some states like Lagos, Ogun, and Edo have moved to fully digital processes. Others, like Kano, Plateau, and Rivers, still combine paper and online filing. Techpoint Africa If your state has a digital portal, use it. Manual filing is being actively discouraged.
To file, you will need your Tax Identification Number (TIN) — which must now be linked to your BVN and NIN — along with proof of income, bank statements, and any supporting documents for deductions you wish to claim, such as rent receipts or pension records.
What Happens If You Miss the Deadline?
The penalties are automatic and steep. Missing the filing deadline attracts a penalty of ₦100,000 for the first month, and ₦50,000 for every subsequent month the failure continues.
It does not stop there. If you fail to file returns entirely, the tax authority can issue a “Best of Judgment” assessment, estimating your income based on available information. This includes bank records, property ownership, and lifestyle indicators.
False declarations can result in fines of up to ₦1 million, three years in prison, or both.
Why This Matters
Nigeria’s tax reforms are not just bureaucratic housekeeping. They address the country’s over-reliance on oil, which accounts for 70 per cent of government revenue, despite volatile global prices. Punch Broadening the tax base, especially through digital enforcement and data-linked compliance, is central to the government’s plan to fund public services without borrowing.
For ordinary Nigerians, compliance is no longer a matter of goodwill. The NRS now has the tools to cross-reference your payroll records, bank transactions, and filed returns and the legal teeth to act on discrepancies.
March 31 is not a suggestion. File now!
