Majority of taxpayers unaware of filing process as March 31 deadline arrives

As the March 31 deadline takes effect today, findings indicate that most Nigerian taxpayers remain unaware of the procedures for filing personal income tax returns under the new tax laws.

The Nigeria Tax Act 2025 mandates every income-earning Nigerian to file an annual tax return detailing earnings from the previous year.

For salaried workers, taxes are typically deducted through the Pay-As-You-Earn (PAYE) system. However, the new Act now requires employees to file annual returns for record-keeping, verification, and the purpose of obtaining a Tax Clearance Certificate (TCC).

Before filing, taxpayers must possess a Tax Identification Number (TIN), which serves as a unique identifier for all tax-related activities. The TIN can be generated online using a National Identification Number (NIN) or obtained through the Nigeria Revenue Service or the relevant state tax authority.

Other requirements for filing include a valid means of identification, payslips or income statements, bank statements, business or freelance income records, evidence of deductions such as pension and insurance, proof of rent paid for those seeking rent relief claims, and previous tax filing receipts where applicable.

For employees of corporate organizations, taxpayers must declare all income sources earned within the year, including salaries and wages, business or professional income, freelance or consulting earnings, dividends and interest income, and foreign income where applicable.

Under the new tax laws, returns must include total income, deductions or reliefs, and tax payable. Filing can be completed digitally through the relevant state internal revenue service portal or physically at designated tax offices. Taxpayers are required to file in their state of residence and provide accurate personal, employment, and income details.

For employees under PAYE, filing is mandatory if the individual earns additional income such as rent or freelance work, runs a business or professional practice, has multiple income sources, or changed employers within the year.

Upon filing, taxpayers automatically receive an acknowledgment from the state internal revenue service.

Authorities may accept the return as filed or issue an assessment after review, and taxpayers have the right to challenge any assessment within the legally specified timeframe.

Filing tax returns has now become a legal obligation for all income earners in Nigeria. Beyond avoiding penalties, compliance is often required for accessing essential services such as government contracts, loans, and visa applications, all of which typically require a Tax Clearance Certificate.

Failure to comply may attract penalties, including fines and additional charges, depending on the duration of default and state regulations. The new tax laws set the filing deadline for individual returns as March 31 of each year. Non-filing may result in penalties of N100,000 for the first month and N50,000 for each subsequent month of default.

Additionally, the law stipulates that persistent refusal to pay an established tax liability could trigger the power of substitution, allowing the tax authority to recover the debt through third parties.

This provision applies when a taxpayer fails to pay after due notice. Under this measure, the tax authority may appoint any person or institution holding funds on behalf of the taxpayer—such as a bank, business partner, or tenant—to remit those funds directly to settle the outstanding tax debt.

This step is taken only after the liability has been properly established and the taxpayer has failed to comply.

About The Author

Dele Fashomi

Dele Fashomi, seasoned journalist and communication teacher, is a holder of Master of Arts degree in Communication and Language Arts from the University of Ibadan in 1992/93.

Earlier, he had bagged a Bachelor degree from the same university in 1984, after which he proceeded to the Nigerian Institute of Journalism, Lagos, in 1990, for a postgraduate diploma in Journalism.

He had done many courses in communication, including the EU-BBC Editing Course in 2002.

Mr. Fashomi combines effectively the practice, research and teaching of communication. And to date, he has published two academic works in communication: Issues in Communication Technology and Policy (2010) and Economic and Social Issues in Advertising and PR (2013).

He had his first break in the Nigerian media in Concord Newspapers in 1990 and today, he has over two and half decades experience earned in several newspapers.

He has been part of many start-ups, such as The Republic (1987), The Comet (1999), The Anchor 2001 – 2002; Sun Newspapers (2003); Westerner newsmagazine (2005 – 2010) as Editor; National Life (2011) as Sunday Editor, and Newswatch Newspapers (2012- 2016) as Daily Editor.

Dele Fashomi is now the Publisher/Editor-in-Chief of Newstide247.com newspaper online, which he started in July 2015. He is also into biography writing, with many books in his trail, some of which he wrote alone and one he co- authored with his mentor, Mr Dare Babarinsa, entitled:  Olabiyi Durojaiye – DARE TO BE DiFFERENT. He also guided and collaborated with Pa Olatunji Odusanya in writing his autobiography – AGAINST ALL ODDS. There are many other books in the works under his pen.

See author's posts