NIGERIA TAX SUMMIT BY PASTOR DR. OLUMIDE EMMANUEL

WE DON’T PREACH ABOUT PAYING TITHE ALONE, WE SHOULD ALSO PAY OUR TAX – PASTOR DR. OLUMIDE EMMANUEL

The Federal Government of Nigeria has stated that from 1^st January, 2026, the new Nigeria Tax law will take effect in Nigeria.

Pastor Olumide Emmanuel, who is the General Overseer of Calvary Bible Church prominent Nigerian motivational speaker, wealth coach, relationship expert, and bestselling author, used a moment to explain all about the Nigeria Tax Summit.

SOME QUESTIONS AND ANSWERS RENDERED ON THE NEW NIGERIA TAX LAW, WHICH FOCUSES ON INDIVIDUALS AND SMALL BUSINESSES

 Question 1:
When will the new Nigeria Tax Act take effect?

Answer 1:
The new Nigeria Tax Act takes effect from 1^st January, 2026

Question 2:
Which specific individual does the Nigeria Tax Law apply to?

Answer 2:
It applies to all individuals that earn income in Nigeria (workers, content creators, remote workers, influencers, traders, etc) and to Nigerians earning income abroad if they are tax residents in Nigeria.

Question 3:
Will transfers and deposits into my bank account be taxed?

Answer 3:
No. moving money around (via POS, transfer, deposit, or withdrawal) is not a taxable event. What is taxed is income earned.

Question 4:
Will the money I keep in my bank account be taxed from 2026?

Answer 4:
No. Just having money in your account is not taxable. Only the income you earn (like salary, business profits, or interest) is what can be taxed.

Question 5:
I am a student with no job. Will I pay tax in 2026?

Answer 5:
No. If you have no taxable income, you won’t pay tax. Tax payment starts from those earning a maximum of N800,000 and above per year. Those earning below will not be taxed.

 
A taxable income means returns of investment, profit made, or salary earned.

Question 6:
Will tax authorities now monitor bank accounts of businesses more closely?

Answer 6:
Yes, it will be easier for authorities to track compliance. But again, your bank balance will not be taxed; profit and income are.

Question 7:
Will I pay tax on a loan I borrow from Fairmoney or any lender?

Answer 7:
No. Loans are not taxable given that they are not income. However, the interest earned by Fairmoney or any other loan lender will be taxed at their own hands.

Question 8:
I run a one-man business. Do I pay personal income tax or company income tax?

Answer 8:
If registered as an enterprise (business name), you will pay personal income tax. If registered as a limited liability company, then you pay company income tax.

Question 9:
If I sell shares and make a profit, will I pay tax in 2026?

Answer 9:
No, as long as the shares you sold are not more than N150 million in value, and the gain is not above N10 million. However, if it is higher than this threshold, the gain becomes taxable.

Question 10:
I am a pensioner. Will my pension income be taxed in 2026?

Answer 10:
No. Approved pension and retirement benefits are exempt from tax

Question 11:
Are military salaries taxable?

Answer 11:
No. The salaries of military officers are now tax exempt.

Question 12:
Do creatives (authors, musicians, and sportsmen) still enjoy tax exemptions on foreign income?

Answer 12:
No. They must now pay Nigerian tax on their income earned within Nigeria and outside.

Question 13:
Are crypto gains taxable?

Answer 13:
Yes. Profits from crypto, NFTs, and other digital assets are now taxed.

Question 14:
Who is exempt from personal income tax?

Answer 14:
Individuals earning the national minimum wage or less and those earning below N800,000 annually are exempt.

Question 15:
What are the new progressive tax bands?

Answer 15:
The new annual income tax rates are as follows:

Question 16:
If I get a big severance package when leaving my job, will I pay tax on it?

Answer 16:
You won’t pay tax if it is N50 million or less but if it is more then the extra amount will be taxed using the progressive tax band in no 15 above.

Question 17:
If I earn dividends or rent from abroad, will Nigeria tax it?

Answer 17:
Dividends, interest, rent, royalties earned from outside Nigeria are exempt from tax provided they are brought into Nigeria through approved channels (banks).

Question 18:
If a soldier or anyone in the armed forces gets injured in service and starts receiving a disability pension, will it be taxed in Nigeria?

Answer 18:
No. The disability pensions earned by the soldier or anyone in the armed forces will be completely tax exempt.

Question 19:
My uncle wants to start an agricultural company next year. Will his company be taxed in Nigeria?

Answer 19:
No. Agricultural companies such as those in crop production, livestock, forestry, dairy, and cocoa processing will enjoy a 5-year tax holiday from the date they begin operation.

Question 20:
Is income from federal or state government bonds taxable?

Answer 20:
No, all government bonds are exempt from tax.

Question 21:
What does rent relief entail under the new tax law?

Answer 21:
Yes, from 2026, individuals can claim rent relief of 20% of the annual rent paid, but capped at N500,000. For instance, if your yearly rent is N5 million, 20% would be N1 million, but the law caps it at N500,000. To enjoy this relief, you must declare your actual rent and provide the details to the relevant tax authority.

 LAWYER DESCRIBES ENUGU AND HER INDIGENES USING A POEM

Question 22:
I earn 6m yearly; will I be better off under the new tax law?

Answer 22:
OLD LAW:
CRA = 20% of N6m (N1.2m) + 200k = N1.4m
Taxable income = N6m – N1.4m = N4.6m
Applying old tax bands gives total tax of N896,000

NEW LAW (NTA 2025):
Rent relief = N500k (must declare actual rent).
Taxable income = N6m – N500k = N5.5m
Applying new bands:
First N800k at 0% = N0
Next N2.2m @ 15% = N330k
Remaining N2.5m @18% = N450k
Under the new law, tax reduces from N896k to N780k, saving N116k. This will increase your net pay (take-home pay).

Question 23:
If my company’s turnover is below N50 million, will I pay tax?

Answer 23:
No. Small companies under N50m turnover are exempt from taxes.

Question 24:
As a remote worker in Nigeria for an international organization, will I pay tax?

Answer 24:
Yes, you will pay tax in Nigeria if the country where the international organization is based exempts your salary under a treaty or diplomatic arrangement.

Question 25:
Will a foreigner earning a salary in Nigeria be taxed?

Answer 25:
No, if their employer is a start-up or operates in tech or creative arts, and their income is already taxed in their country of residence.

This ends the questions answered by Pastor (Dr.) Emmanuel. Meanwhile, some other contributions were taken from the panelists, who are professionals in the accounting sector. Also, some live questions and answers were also taken and treated.

To get more details on the Nigerian Tax reform, visit https://fiscalreforms.ng/

To listen live about the Nigeria Tax Summit by Pastor Olumide Emmanuel, visit NIGERIA TAX SUBMIT – PASTOR DR. OLUMIDE EMMANUEL