Banks to Flag Transactions Above ₦5m Monthly Under New Tax Law—Effective from 2026.
Starting in 2026, Nigerian banks will be required to report all customer accounts with monthly transactions exceeding ₦5 million to the Federal Inland Revenue Service (FIRS) and other tax authorities, as part of sweeping new tax reforms under the 2025 Tax Reform Act.
Announced by the National Orientation Agency (NOA) via its official X (formerly Twitter) handle, the directive is aimed at improving tax compliance, curbing financial irregularities, and aligning Nigeria’s fiscal policies with international standards.
The new rule, anchored in Section 30 of the Act, places commercial banks at the center of a renewed push for financial transparency. According to the NOA, this monthly reporting requirement is part of broader efforts to ensure that taxable income, particularly from high-value and informal sector transactions, is captured within the tax system.
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