With just hours to go before the March 31, 2026 deadline, thousands of Nigerians are scrambling to file their personal income tax returns, as required under the Nigeria Tax Act 2025. Despite automatic deductions through Pay-As-You-Earn (PAYE), many taxpayers remain uncertain about filing their annual returns and claiming eligible reliefs.
Understand Your Tax Obligations
All individuals earning income in Nigeria must file annual returns, whether salaried, self-employed, or running businesses. Employees may have taxes deducted by their employers, but additional income streams—rent, freelance work, dividends, or foreign earnings—require self-declaration.
Get Your Tax Identification Number (TIN)
Before filing, Nigerians must obtain a Tax Identification Number, which can be generated online using the National Identification Number or via the Federal or State Internal Revenue Service.
Calculate Income and Eligible Deductions
The 2025 tax reforms abolished the Consolidated Relief Allowance. Instead, taxpayers can claim rent relief, capped at ₦500,000 or 20% of annual rent paid, along with deductions for pension and National Housing Fund contributions. The first ₦800,000 of taxable income remains tax-free.
Filing Process
Returns can be submitted online via the State Internal Revenue Service portals or physically at designated tax offices. Accurate reporting of income, deductions, and supporting documents is essential to avoid errors or penalties.
Why Compliance Matters
Failing to file can result in fines, additional charges, and difficulties accessing loans, visas, government contracts, or a Tax Clearance Certificate. Early filing ensures smoother processing and avoids last-minute portal congestion.
As the countdown ticks toward March 31, prompt action, accurate documentation, and awareness of tax obligations remain the keys to compliance for every Nigerian income earner.
Juliet Ezeh is the founder and chief reporter at Westbridge Reporters with over 7 years of experience in journalism. She covers crime, industry, policy, and social developments, delivering timely and accurate reporting.