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Watch now to claim my new book on Effective Book Marketing Strategies.The new tax laws is operational and also the new tax fine in Nigeria. You should understand that the two go together.
Nigerians are under the regime of a revolutionary new tax laws and every Nigerian deserves to know what is required of them.
We have decided to present this interesting article on the new tax laws and the new tax fine to you.
This is authored by an expert in the field, Iking Ferry. You will read more about him at the end of the article and how you can follow him on the social media.
Related: Be your own boss in Nigeria
What’s the new tax fine?
Less than 6 days to 2026…
And one mistake can cost you ₦200,000 plus everything you earned.
If money enters your account regularly, Read this slowly.
Because from January 2026, ignorance will become very expensive in Nigeria.
Some of my followers tag me on a post made by FIRS (Federal Inland Revenue Service), and it confirmed what I’ve been warning about for months.
As your Financial Literacy Advocate, Let me explain this in a way that even Mama Ngozi that sell Small provisions Store in the village will understand.
First, What Did FIRS Actually Say about the new tax laws?
FIRS clearly stated:
Any taxable person who fails to process taxable supply through the fiscalisation system will pay:
₦200,000 penalty
PLUS 100% of the tax due
PLUS interest at the CBN Monetary Policy Rate
This is Section 104 of the Nigeria Tax Administration Act.
Are you running a taxable business in Nigeria?
In simple English?
If you are running a taxable business
And you are not properly recording, reporting, and documenting transactions
Government will assume the worst, and charge you heavily.
Now Let Me Break This Down With A simple story, So that even Grandma in the Village will Nod her head and say “Wow.. I understand this one”
Imagine:
Mama Ngozi sells provisions and household items.
Every day:
Customers transfer money
POS transactions enter her account
She buys stock
She feeds family
She spends anyhow
No separation
No record
No receipts
At the end of the year: ₦15 million entered her account.
Her real profit? Maybe ₦700k.
But here is the problem…
The tax system does NOT read your mind
It only reads records
If Mama Ngozi cannot prove expenses,
Government can assume the ₦15m is taxable supply.
And if she didn’t properly process or report it?
₦200,000 penalty
PLUS tax on the ₦15m
PLUS interest
Tax is not just for big companies
That is how small business owners enter wahala they never planned for.
Let me tell you where most people get it wrong
Many Nigerians think:
“Tax is only for big companies.”
No.
Tax is for:
Traders
POS agents
Content creators
Online vendors
Importers
Freelancers
Service providers
Once money enters your account regularly, you are visible.
And from 2026:
Visibility = accountability
What does government of Nigeria want from you
Let me be very clear.
Government is NOT saying: “Don’t do business.”
Government is saying: “Structure your business properly.”
That means:
Proper records
Clear separation of money
Ability to explain inflows and expenses
Filing returns yourself before they come for you
Tax fine in Nigeria: How to avoid it
IKING, What should I do like this?
Oya.
Relax…. I gat you like Mama Ngozi.
Now, listen carefully.
If Mama Ngozi does just these 4 things, she is safe:
1: Register a Limited Liability Company (LTD)
Why?
Companies below ₦100m turnover = 0% company tax
2: Open TWO corporate accounts
One for income
One for expenses
3: Keep receipts & simple narration
Rent
Transport
Stock purchase
POS charges
Data
Logistics
4: File returns herself yearly
When you file first, government listens. When government files for you, they don’t smile.
This notice is NOT about punishment.
It is a warning shot.
Government is moving fully into:
Digital monitoring
Fiscalisation
Transaction visibility
Automated penalties
Meaning:
No explanation later
No “please sir”
No emotional story
Only records will speak.
Tax is not the enemy.
Ignorance is.
The law does not punish effort. It punishes disorder.
If you structure yourself:
You won’t panic
You won’t be harassed
You won’t overpay
You won’t lose sleep
But if you ignore this?
2026 will be very loud.
I hope this helps, Share this to someone that needs it.
About the Author
I am Iking Ferry,
Your Financial Literacy Advocate
On a mission to build 1 million financially free Nigerians, with knowledge, not fear.
You can follow his page on Facebook here
You can get your books published online by getting in touch with us at Sarefat Vision Publishing. We have lots of years of valuable experience in helping authors get their books published on platforms like Amazon, Kobo, Babelcube, Payhip, Buy Me a Coffee, Smashwords (now Draft2digital), NowNowBooks store etc. Call or Whatsapp 08034300979 for your book publishing needs.
https://Nownowbooks.com.ng