The government has confirmed that starting in January 2026, all Nigerian banks will be required to report customer accounts with monthly transaction volumes of ₦5 million and above to tax authorities, including the Federal Inland Revenue Service (FIRS). This mandate was enacted through the 2025 Tax Reform Act, aimed at increasing fiscal transparency, improving tax compliance, and curbing unreported income among high-net-worth segments of the population. According to Section 30 of the Act, banks are now frontline monitors of substantial financial activities to ensure taxable income does not slip through the cracks.
Analysts say the measure aligns with global standards and could significantly deepen Nigeria’s tax base, potentially boosting government revenues without burdening low-income earners. The reform package includes consumer-friendly provisions: individuals earning up to ₦800,000 annually will be exempt from personal income tax, and a new VAT-sharing model redistributes revenues more equitably between federal and subnational governments. Experts note the move rewards consumption-driven states like Lagos and Rivers, while also intensifying scrutiny of high-value accounts by financial regulators.
Privacy advocates and banking industry stakeholders caution that clear guidelines are essential to protect customers’ data from misuse. Meanwhile, banks are expanding compliance units and upgrading systems to handle the reporting mandate when it takes effect in January 2026. The government targets this as a pivotal step toward financial transparency and sustainable revenue generation, while encouraging broader economic growth.
