NTA 2025

January 1, 2026 is coming fast, and if you’re running a Nigerian business, the new tax law is about to shake things up big time. The FIRS is transforming into the Nigeria Revenue Service (NRS), and they’re not playing around anymore. They’ve got expanded powers, digital tracking systems, and stricter compliance requirements that mean they can now connect the dots between your business bank accounts, corporate registrations, and other government databases. Here’s what’s real: businesses with solid financial records are going to breeze through 2026. Businesses without them? They’re looking at penalties, missed deductions, and audit headaches that’ll give you sleepless nights. So let’s cut through the noise and talk about what you actually need to have in place right now. What’s Actually Happening in 2026? Look, the new tax reform is consolidating a bunch of different tax laws into one big unified system. It’s introducing stricter penalties for people who mess up, and the NRS is getting powers to cross-check your business data directly with your bank and other government agencies. Honestly, if you’re organized, this is good news. If you’re not, well… that’s a problem. The changes that directly affect your wallet are pretty straightforward. If your company’s annual turnover hits ₦100 million or higher, you’re paying Company Income Tax. If you’re an individual earning less than ₦800,000 a year, congratulations—you don’t pay personal income tax (but you still need to file returns and keep records). If you’re making money from abroad as a remote worker or freelancer, you’re now looking at up to 23% tax on foreign earnings. And here’s something a lot of people miss: you can claim 20% of your rent as a deductible expense, capped at ₦500,000 per year. The bottom line? Your financial records need to be on point. Record 1: Sales & Revenue Documentation Every income your business receives must be properly documented. This includes invoices, receipts, bank deposit slips, and payment confirmations—whether from local or international transactions. Why does this matter so much right now? Because with the corporate income tax rate fixed at 30%, your business’s tax bill is directly tied to how accurately you document every naira earned. That means invoices, receipts, bank deposits, and payment confirmations—especially for international transactions—are no longer optional. And if you’re earning money from abroad through online platforms or remote work, the new tax laws demand full transparency. Starting January 2026, freelancers and remote workers in Nigeria will be taxed just like traditional employees, with rates reaching up to 25% depending on income level.  Those days of quietly receiving payments through payment platforms or crypto wallets without scrutiny? They’re over. Nigeria’s tax authorities are expanding their reach to include digital earners, aiming to boost the country’s tax-to-GDP ratio and close long-standing revenue gaps. The smartest move you can make is to start using accounting software that automatically tracks all your sales. Take digital copies of every payment receipt you get and organize them by month. That’s what the NRS is expecting to see when they come knocking. Record 2: Business Expenses & Deductions This is honestly where you can reduce what you actually owe the government. Every legitimate business expense—your office rent, utilities, equipment, staff meals during business meetings, office supplies, professional services like accounting or legal help, advertising and marketing spend—all of it counts as long as you’ve got receipts to back it up. But here’s something that just changed and most people don’t know about yet: you can now claim 20% of whatever you pay as rent as a deductible expense, but here’s the catch—it’s capped at ₦500,000 per year. That’s basically free money if you just document it properly. On top of that, if you’re exporting goods from Nigeria, any profits you make from those exports are completely exempt from income tax—as long as the money comes back into Nigeria through official legal channels. That’s huge if you’re in the export business. What you need to do is photograph every receipt the moment you get it. Create folders or categories for different types of expenses—rent, utilities, supplies, marketing—and keep them organized. The FIRS requires you to hold onto these for at least six years, so make sure your storage system can handle that. Record 3: Payroll & Employment Records If you’ve got people working for you, listen up—this is non-negotiable stuff. The FIRS watches payroll like a hawk because it connects to multiple types of taxes. They’re checking employee names, their TINs, gross salaries paid, every deduction (whether it’s tax, pension contributions, or health insurance), net pay, and exactly when payments were made—all of this for every single pay period. The real talk is that doing payroll manually or with spreadsheets is asking for trouble. Use professional payroll software or hire a payroll service. Yeah, there’s a cost, but it’s way cheaper than paying FIRS penalties for getting it wrong. And you’ve got to keep these records for a minimum of six years. Record 4: Bank Statements & Reconciliation Your bank statements are basically your audit trail. Every deposit that goes in should match up with your income records. Every withdrawal should line up with your expenses. When there are gaps or things don’t match, that’s when the FIRS gets interested and starts asking questions. What most businesses don’t do but absolutely should is reconcile their bank accounts every single month. Don’t wait until tax season is breathing down your neck. Monthly reconciliation catches mistakes early, stops fraud before it happens, and gives you a real picture of whether your business is actually making money or bleeding cash. The best way to do this is using accounting software that automatically pulls in your transactions from your bank. It saves you hours and cuts down on errors. Keep your bank statements for at least six years—honestly, you should probably keep them forever since they don’t take up much space digitally. Record 5: Fixed Assets & Depreciation Records This is the one a lot of Nigerian business owners completely overlook, but it matters.