Starting January 2026, banks, insurance companies, stockbrokers, and other financial institutions in Nigeria will be required to report high-value monthly transactions to the tax authorities as part of new tax regulations introduced under the Nigeria Tax Administration Act (NTAA), 2025.
According to Section 29 of the NTAA, titled “Information to be delivered by bankers and others”, financial institutions must submit quarterly returns detailing:
- The names and addresses of all new customers.
- The names and addresses of existing customers who:
- As individuals, carry out transactions totaling ₦25 million or more in any given month.
- As corporate entities, conduct transactions amounting to ₦100 million or more within the same period.
These reports are to be submitted to the relevant tax authority regardless of whether a formal request has been made.
The NTAA is part of a broader set of new fiscal measures, including the Nigeria Tax Act 2025, aimed at strengthening tax compliance and transparency in financial dealings across the country.
In addition to the reporting obligations, the Act also empowers tax authorities to designate financial institutions and other accredited parties as third-party agents for tax debt recovery, especially in cases where standard legal methods have failed.
The Act provides that:
“The relevant tax authority may assign outstanding tax debts, in whole or in part, to an accredited third party who shall assume responsibility for recovering the tax debts in accordance with the provisions of this Act or regulations issued by the Service.”
Such third-party agents may include banks, debt recovery firms, or any other persons certified by the tax authority. This assignment can only be made after all legal avenues—such as notifications, payment demands, and enforcement actions—have been exhausted.
On the issue of debts owed to failed banks, the Act grants exclusive jurisdiction to the courts to adjudicate all recovery efforts related to outstanding obligations as of the date of the bank’s closure.
The new measures are part of the government’s strategy to improve tax administration, enhance revenue generation, and reduce reliance on oil-based income by leveraging data from financial institutions.
