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bola·Business·

How Nigeria’s New Tax Rules Could Affect Freelancers and Small Businesses

Nigeria’s tax authorities are increasingly able to compare tax returns with information obtained from banks and other financial institutions. Reporting requirements apply when cumulative monthly transactions reach ₦25 million for individuals or ₦100 million for corporate bodies. A large amount entering your account is not automatically taxable income. A freelancer, remote worker or small-business owner may receive client payments alongside transfers from personal savings, loans from friends, or money moved between their own accounts. The key is being able to explain each transaction. Keep invoices, contracts, payment confirmations and records for non-business transfers. Your bank statement shows money received, but your records should show what that money represents.

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J
jayjay

How are freelancers separating personal and business transactions now that monthly totals can be compared with bank information?

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B
bisi

What simple record-keeping method are freelancers finding practical for keeping work income separate from personal spending?

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L
lily

The ₦25 million individual threshold makes record-keeping look less optional for anyone with irregular but sizable client payments.

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E
emeka

These rules may not affect every small business equally; the stated reporting thresholds are still quite high for many operators.

0
K
kaka

Keep invoices, payment records, and a simple monthly transaction summary so your tax return can match what financial institutions report.

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