As Nigeria intensifies efforts to expand its revenue base and improve economic stability, understanding how to pay taxes correctly has become more important than ever. Many businesses still struggle with the process due to limited awareness or outdated information, yet the modern tax system is now simpler, fully digital, and free to access.
Registration or onboarding on the official platform costs nothing, and taxpayers should also know that no deductions are made at source—every naira paid goes directly into the Federation Account at the Central Bank of Nigeria (CBN). Additionally, not every commercial bank in the country is authorised to process tax payments; only approved participating banks and licensed payment service providers (PSSPs), can handle such transactions.
In recent years, the tax payment system has undergone significant reforms to make payments easier, faster, and safer.
Today, tax payments are fully digitised, highly transparent, and centrally monitored. However, citizens can only benefit from this improved system when they know how it works.
With article, I intend to breakdown the current tax payment procedure in clear, practical language to help Nigerian businesses fulfill their obligations without stress.
Digital Tax Administration Begins With TaxPro Max
The first step for every taxpayer is registration on TaxPro Max, the government’s official tax administration portal. This platform serves as a personal tax dashboard where taxpayers can:
- File returns
- View assessments
- Generate receipts
- Track compliance history
For new taxpayers, registration is mandatory. Existing taxpayers must activate or onboard their accounts to gain full access.
Step 1: Register or Activate Your Account
- Obtain or Verify Your TIN – The Taxpayer Identification Number (TIN), is essential. New businesses should ensure they have an active TIN.
- Register on TaxPro Max – Visit the TaxPro Max portal, fill in the required details, and submit any verification documents if requested.
- Activate Your Account – Once verified, you will receive confirmation that your account is active, giving you full access to the platform.
Generating a Tax Assessment
Once logged in, taxpayers can immediately see their profile and outstanding obligations.
All tax payments must be tied to a valid assessment, which is generated on the platform. This digital assessment clearly outlines the type of tax and the amount due. For small businesses (SMEs), this step is the foundation of the payment process. Without a proper assessment, no official payment can be processed.
Step 2: File Your Tax Return and Generate Assessment
- Select the type of tax return (e.g., Companies’ Income Tax, VAT, Tertiary Education Tax).
- Complete the return with accurate financial details. The system may auto-calculate liabilities.
- Submit the return to generate a Document Identification Number (DIN).
- Use the DIN to generate your official tax assessment, confirming what you owe.
Taxpayers Now Choose From Multiple Trusted Payment Channels
After generating an assessment, taxpayers proceed to select from a list of approved Payment System Service Providers (PSSPs). These licensed financial technology companies make the payment process secure and straightforward.
The currently approved PSSPs/channels are:
- Quickteller
- Remita
- Etranzact
- Flutterwave
- XpressPay
These platforms offer both online and in-branch options, making it convenient for taxpayers in both rural and urban areas.
Payments Can Be Made Online or in Bank Branches
Once a PSSP is selected, taxpayers may pay via:
- Online banking
- Debit card
- Bank transfer
- Mobile wallet
For those who prefer physical transactions, payment over the counter at participating banks is also available. The critical point is that payments must go through an authorised provider to ensure transparency and security.
Funds Go Directly to the Central Bank Account – (CBN)
A key feature of the modernised process is that PSSPs do not hold taxpayers’ funds. After receiving payment, they remit the money directly to the appropriate government account at the CBN.
This system:
Reduces the risk of diversion, delays, and fraud
Ensures government revenue flows efficiently into national coffers
Guarantees that every naira paid is fully accounted for
Why Nigerians Should Care About Digital Tax Payments
A transparent and well-understood tax payment system supports national development by:
- Reducing errors in payment
- Increasing public trust in tax procedures
- Preventing revenue leakages
- Strengthening accountability
- Ensuring funds reach the government promptly
As Nigeria continues to modernise its tax administration system, public awareness will play a major role in improving compliance and boosting national revenue. Understanding how to pay taxes correctly is not only a legal duty but also an essential contribution to building a stronger, more stable Nigeria.
Step 3: Maintain Compliance and Keep Records
- Set a compliance calendar with deadlines for CIT, VAT, and PAYE.
- Keep digital copies of e-acknowledgements, receipts, assessments, and Tax Clearance Certificates.
- Review your tax status periodically to ensure accurate payments.
- Engage professional tax advisors for growing businesses to avoid mistakes.
Conclusion
The transformation of Nigeria’s tax system through TaxPro Max and modernised payment channels has made paying taxes easier, faster, and more secure. By registering on the platform, generating accurate assessments, using authorised PSSPs, and keeping records, Nigerian businesses can navigate their tax obligations with confidence, contributing to national development while avoiding unnecessary stress or penalties.
A strong understanding of this digital system empowers businesses to comply efficiently and helps ensure that Nigeria’s revenue collection becomes transparent, accountable, and future-ready.
