The Federal Government has announced a new tax framework under the Nigerian Tax Administration Act (NTAA) 2025, a development expected to reshape tax compliance and widen Nigeria’s revenue base.
The law, signed in May and due for implementation in January 2026, exempts individuals earning ₦800,000 or below per annum. Thereafter, a progressive tax rate applies—15% on the next ₦2.2 million, 20% on the next ₦17 million, 22.5% on the next ₦30 million, and 25% for income exceeding ₦50 million.
Corporate tax provisions exempt small companies with turnover not beyond ₦100 million and fixed assets not above ₦250 million. Once either threshold is exceeded, the company falls under normal tax obligations.
Of note, the Act mandates all taxable persons to possess a Tax Identification Number (TIN) as a requirement for financial transactions. Banks, insurance firms, and investment institutions must demand and verify TINs before granting services.
In its advisory, the Military Pensions Board (MPB) reassured service retirees and next-of-kin of fallen soldiers that their pensions, gratuities, and death benefits remain fully tax-exempt.
“Our retirees will continue to enjoy their pensions in full, without deductions. However, we advise them to obtain TINs for convenience in future financial dealings,” the Board emphasized.
The MPB has also rolled out digital guides and step-by-step videos to help retirees secure their TINs online at no cost.
FG Rolls Out NTAA 2025: TIN Now Key To Banking, Pensioners Still Protected
