Tax laws: We've no business with your transfer narrations, FG tells Nigerians

 

Tax laws: We've no business with your transfer narrations,

FG tells Nigerians

FG: ‘We’ve No Business With Your Transfer Narrations’

The Federal Government has assured Nigerians that under the newly-enacted tax laws, authorities will not monitor or debit personal bank accounts based on transfer narrations or descriptions you use when sending money. This clarification was given to address public concerns and rumours circulating around the new tax regime starting January 2026. 

Key points:

• No government agency will track or make tax deductions simply because of the wording you put in a transfer narration.  
• Nigerians are expected to self-declare their income at the end of the year when filing taxes rather than being taxed automatically via banking data.  
• Some members of the House of Representatives have called for a suspension of implementation to allow for further review and clarification.

Under the new regime, individuals earning up to ₦800,000 per year (about ₦66,667 per month) are completely exempt from personal income tax (PAYE). This means you don’t pay income tax if your annual income is at or below this amount. 

New Progressive Tax Rates for Higher Earners

If you earn more than ₦800,000 a year, you’ll pay tax progressively — meaning the percentage you pay increases with income:

Annual Income Bracket (₦)	Tax Rate
Up to ₦800,000	0%
Above ₦800,000	Progressive rates up to 25% for the highest earners

High earners (above around ₦50 million per year) will pay up to 25% as a top marginal rate. 

👉 So the poorer you are, the less tax you pay — or nothing at all if under the exempt threshold. 

Peace