The Nigerian government has initiated a comprehensive overhaul of the nation's taxation system, introducing significant reforms to payable taxes and payment methodologies. Designed to expand the country's revenue base, enhance economic stability, and block tax leakages, these changes are set to be implemented in phases starting from 2026.
Understanding the New Tax Laws
The foundation of this reform is built upon four new tax laws passed by the federal government in 2025. These are the Nigeria Tax Act, 2025 (NTA), the Nigeria Tax Administration Act, 2025 (NTAA), the Nigeria Revenue Service (Establishment) Act, 2025 (NRSEA), and the Joint Revenue Board (Establishment) Act, 2025 (JRBEA). The Presidential Tax Reforms Committee has published detailed explanations to guide the public and businesses through the new regime.
Despite these efforts, a knowledge gap persists, particularly among small and medium-sized enterprise (SME) owners, who remain unclear about the new, fully digitised procedures.
A Step-by-Step Guide to the New Tax Process
The entire tax process has been migrated to a central, digital platform to ensure transparency and efficiency. Here is a simplified breakdown for businesses and individuals.
Step One: Mandatory Registration on TaxPro-Max
The first and most crucial step is registration on TaxPro-Max, the official tax administration portal. This platform serves as a personal tax dashboard where taxpayers can file returns, view assessments, generate receipts, and track their compliance history. While new taxpayers must complete registration, existing taxpayers are required to activate or onboard their accounts to gain full access to the system's features.
Step Two: Generating Your Tax Assessment
Once logged into the TaxPro-Max portal, taxpayers can immediately view their profile and any outstanding obligations. A fundamental rule of the new system is that a valid assessment must be generated before any payment can be made. The platform guides users through this process, which clearly outlines the type of tax due and the exact amount. For SMEs, this digital assessment is the cornerstone of their tax compliance journey.
Step Three: Payment Through Approved Channels
After generating the assessment, the taxpayer must proceed to payment using only the approved list of Payment System Service Providers (PSSPs). The currently authorised channels are:
- Flutterwave
- Quickteller
- Etranzact
- XpressPay
- Remita
These platforms offer flexibility, being accessible both online and in physical bank branches, thus catering to taxpayers in both urban and rural areas. Payments can be made via online banking, debit cards, bank transfers, or mobile wallets. For those who prefer in-person transactions, they can walk into any participating bank branch and pay over the counter.
Enhanced Security and Government Directives
A critical security feature of the new system is that the PSSPs do not hold taxpayers' funds. Instead, all payments are remitted immediately into a dedicated account at the Central Bank of Nigeria (CBN). This measure is designed to drastically reduce the risks of fraud, fund diversion, and delays in the flow of government revenue.
In preparation for the full implementation, the federal government has urged all taxpayers to utilise the new Personal Income Tax Calculator. President Bola Tinubu, via a statement on his official X handle, emphasised that this tool will help Nigerians estimate their tax under the new laws and that the reforms are aimed at creating a genuine redistribution within the nation's economy.
