₦airaland Forum

Banks To Report Monthly Transactions Exceeding ₦5 Million — New Tax Law Enforcement By FIRS Begins In 2026


Nigerian banks have been mandated to report all customer accounts with monthly transactions exceeding N5 million to the country’s tax authorities, according to the latest update from the National Orientation Agency (NOA).

This directive was part of a sweeping tax reform signed into law, aimed at improving tax compliance, curbing financial irregularities, and aligning Nigeria’s fiscal structure with global standards.

The new requirement, outlined in Section 30 of the 2025 Tax Reform Act, places commercial banks at the forefront of a major financial transparency push. Banks will be required to monitor and report high-value transactions on a monthly basis to the Federal Inland Revenue Service (FIRS) and other relevant tax bodies.

Announcing the update via its official X (formerly Twitter) handle, the NOA stated that this measure is part of broader reforms to ensure that taxable income does not escape regulatory oversight.

Analysts said the move could significantly improve the government’s ability to track unreported income and enhance revenue generation from the informal and high-net-worth segments of the economy.

In addition to mandatory transaction reporting, the reform introduces several taxpayer-friendly provisions aimed at easing the burden on low- and middle-income Nigerians:

Individuals earning up to N800,000 annually (N66,667 per month) are now exempt from personal income tax, up from the previous threshold of N500,000. This change is designed to protect low-income earners and support cost-of-living relief.

It further explains that Section 31 of the Act now exempts capital gains on the sale of a primary residence. Additionally, under Section 50, compensation up to ₦10 million for injury, job loss, or defamation is excluded from taxable income, offering broader financial protection to affected individuals.

The reform also introduces a new value-added tax (VAT) distribution model, starting in 2026:Federal Government: 10 percent (reduced from 15%); State Governments: 55 percent (up from 50%); Shared 50 percent equally, 20 percent based on population, 30 percent based on consumption; Local Governments: 35 percent (unchanged)

This shift rewards high-consumption states like Lagos and Rivers, encouraging subnational governments to grow their local economies through increased internal revenue generation.

Stakeholders believe that the combination of mandatory bank transaction reporting and revenue redistribution based on consumption marks a significant shift in Nigeria’s tax administration philosophy. It prioritizes transparency, fairness, and economic activity as key drivers of national development.

Financial experts have praised the move as a bold step toward expanding the tax base without imposing undue burdens on low-income citizens. However, privacy advocates and financial institutions have

called for clear guidelines to ensure data protection and prevent potential abuse of the reporting system.

As implementation begins in 2026, stakeholders will be watching closely to gauge the impact on compliance rates, government revenue, and consumer behavior.

https://thenigerialawyer.com/banks-to-report-monthly-transactions-exceeding-%E2%82%A65-million-new-tax-law-enforcement-by-firs-begins-in-2026/

Nigeria
Ojojumo len jiriya
Nawa ooooooooooooo

"Nigerian banks have been mandated to report all customer accounts with monthly transactions exceeding N5 million to the country’s tax authorities".........Dem must extract tax from everything!

That's good. This should create new jobs for people. Banks are really cashing out.

Pls Nigerians can someone explain to me how do we get here pls

Lol 😂...

How is this supposed to help the lives of the ordinary Nigerian?

This is the height of witchcraft....make dem kuku turn us all to almajiri for this country.

Tinubu is taunting us.
He's taunting Nigerians seriously with his da.f.t policies.

If by mistake.. this Tinubu enters for second tenure..we would be paying tax for breathing air...
OBI IS COMING

this is bad for business biko. Alot of rich Nigerians have been evading taxes for long.

i am not understanding.

Pls we need more clerification

SmartPolician:
That's good. This should create new jobs for people. Banks are really cashing out.

How is t good, please?
How will it create more jobs?

Eager to learn.

Kaybaba5:
Pls Nigerians can someone explain to me how do we get here pls

emilokan


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Kaybaba5:
Pls Nigerians can someone explain to me how do we get here pls

We made a da.f.t man the president of 200 million people. That's how we got here.

So bank will report me if I make over ₦5m in cash transactions monthly?

What about people that spends millions of naira daily.

Hmmmmmmm tinubu no go kill us tax collector president it really a pity expect bank to start cashing out
I hope it won't affect fin tech banks cause I know this another avenue to collect tax

nlfpmod:
https://thenigerialawyer.com/banks-to-report-monthly-transactions-exceeding-%E2%82%A65-million-new-tax-law-enforcement-by-firs-begins-in-2026/

God abeg o. 5m is not even up to $3k.



15 characters needed.

Communism has started
I always knew APC was a curse

All this policies are too harsh. Fela called it Austerity

The proposal of this policy must be mad, except he is only talking about registered businesses.

Banks have no right to report private transactions to anyone, except the purpose is to curb corruption and not for taxation.

iCauseTrouble:
I am really scared as a freelancer.
I am not benefiting anything from this government. Why should I pay tax?

You can move to another country if paying tax in Nigeria is a problem for you while making the money living in Nigeria.

nlfpmod:
https://thenigerialawyer.com/banks-to-report-monthly-transactions-exceeding-%E2%82%A65-million-new-tax-law-enforcement-by-firs-begins-in-2026/

How sensible is this? Who are the people making such rules ?

Hope this will work out. Because most of our Bank manager self na........

Na to open plenty account the do 4 mil and below for we wey no too get money be that na.

Banks have now become monitoring spirits


Hsbbbs
...nhshgbhsjj nhshshhh

I hope that even bank accounts that belong to the president, governors, all politicians, traditional rulers that have transactions above 5 million naira will also be reported

Una go report tire,is 5m transaction too much for an economy like Nigeria…stringent tax laws leads to tax evasion

What a time to be a Nigerian.

My signature tho, I'm active.

Na to dey keep my money for USDT remain like thiss.

Like this post if you are safe for now. But you still have hope you might not be safe later