How to file your tax returns in Nigeria in 2026: A step-by-step guide for every Nigerian
Every Nigerian earning income must file a tax return by March 31 each year, regardless of income level, and regardless of whether tax has already been deducted from your salary through PAYE.
Taiwo Oyedele, Minister of State for Finance and former chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, made the obligation clear again during a recent webinar.
“All of us must file our returns, including those earning low income,” he said. “You must file returns by 31st March of the year in respect of the previous fiscal year.”
Whether you are salaried, self-employed, or a freelancer, the law requires you to file. Here is everything you need to know and how to file.
Why you still need to file even if your employer deducts tax
This is the most common misconception. If you are a salaried employee, your employer deducts tax from your salary every month through the Pay-As-You-Earn system. Many people assume this means their filing obligations are settled. They are not.
Under the Nigeria Tax Act 2025, you are still required to file an annual self-assessment return covering your earnings from the previous year.
Filing serves three purposes: it verifies that your employer deducted the correct amount, it covers any additional income you may have earned outside your salary, and it is what generates your Tax Clearance Certificate, a document you will need for property transactions, visa applications, and business dealings.
Employers also have a separate statutory obligation to file annual returns on behalf of their employees, including projections of staff remuneration for the year.
Who exactly has to file
The short answer is everyone earning income in Nigeria. This includes salaried employees, self-employed individuals, freelancers, traders, business owners, and contract workers. If money came in during 2025, you need to account for it.
Your return should be filed with the State Internal Revenue Service of the state where you live, not necessarily your state of origin. Lagos residents file with LIRS, Abuja residents file with FCTA-IRS, etc.
The full list of websites for every State Internal Revenue Service is listed below:
1. Get Your Tax Identification Number
Before you file anything, you need a Tax Identification Number. Your TIN is your unique identifier for all tax activity in Nigeria.
If you do not have one, you can generate it online using your National Identification Number through the Joint Tax Board’s TIN verification portal at tin.jtb.gov.ng, or obtain one directly from the Federal Inland Revenue Service or your state tax authority. Employees who have been on PAYE may already have a TIN — check with your HR or payroll team.
2. Gather Your Income Information
You are required to declare all sources of income earned between January 1 and December 31, 2025. This includes your salary or wages, income from freelance or contract work, rental income, business profits, dividends, and any other earnings — including income from abroad if you are a Nigerian resident.
Gather your payslips, bank statements, invoices, and any relevant financial documents before you begin.
3. Calculate Your Tax
Nigeria operates a progressive income tax system under the Personal Income Tax Act. The rates are as follows: First ₦300,000 of annual income — 7% Next ₦300,000 — 11% Next ₦500,000 — 15% Next ₦500,000 — 19% Next ₦1,600,000 — 21% Above ₦3,200,000 — 24%
Before applying these rates, you are entitled to deductions that reduce your taxable income. These include a consolidated relief allowance of ₦200,000 plus 20% of your gross income, pension contributions, National Housing Fund contributions, and life assurance premiums.
4. File Your Return
Most state tax authorities now offer online filing. Lagos residents can file through the LIRS portal at lirs.gov.ng. Abuja residents can use the FCTA-IRS portal. Other states have their own portals — search for your state’s Internal Revenue Service website.
For those who prefer in-person filing, returns can be submitted directly at any IRS office in your state of residence.
You will need your TIN, a completed self-assessment form, your income details for 2025, and proof of any deductions you are claiming.
5. Pay Any Outstanding Tax
If your filing shows that you owe tax beyond what was already deducted by your employer, or if you are self-employed and have been managing your own payments, you will need to settle any outstanding balance at the point of filing.
Payment can be made through your bank using your TIN as the reference, via online banking portals, or directly at your state IRS office.
What Happens If You Miss the Deadline
Late filing attracts penalties. Under Nigerian law, failure to file by March 31 can result in a fine, and continued non-compliance can lead to enforcement action by the relevant authority. The longer you wait, the more expensive it becomes.
If you cannot complete your full return by tomorrow, file what you have and provide an amendment later — partial compliance is better than none.
The new reform agenda is actively pushing compliance upward. The Nigeria Tax Act 2025, which came into force this year, has strengthened the legal basis for enforcement and closed several loopholes that previously allowed individuals to avoid filing altogether. The government is no longer treating returns as optional for the formally employed.
Everyone is on notice. If you are unsure about any aspect of your filing, contact your state’s Internal Revenue Service directly or consult a registered consultant.
