Noa Nigeria Outlines New Bank Transaction Reporting Rule as Part of Major Tax Reform
The National Orientation Agency (NOA Nigeria) has announced a crucial directive under Nigeria’s updated tax legislation. Beginning in 2026, all commercial banks will be required to report customer accounts with monthly transactions surpassing ₦5 million to the Federal Inland Revenue Service (FIRS) and other designated tax bodies.
This development comes as part of sweeping financial reforms introduced in the 2025 Tax Reform Act, aimed at boosting tax compliance, curbing financial malpractice, and modernizing Nigeria’s fiscal structure to meet international standards.
Noa Nigeria, through its official X (formerly Twitter) account, highlighted that this measure is one of several initiatives designed to tighten regulatory oversight and ensure taxable income is properly accounted for.
Noa Nigeria . Expertssuggest this new requirement could notably improve government oversight of high-value transactions and unreported income, while enhancing revenue collection from Nigeria’s informal sector and high-net-worth individuals.
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In addition to this reporting mandate, the tax reform introduces several citizen-focused provisions:
Personal income tax exemption threshold raised from ₦500,000 to ₦800,000 annually (₦66,667 monthly), easing the financial burden on low and middle-income earners.
Capital gains tax exemption for the sale of a primary residence under Section 31.
Exclusion of compensation up to ₦10 million for injury, job loss, or defamation from taxable income as detailed in Section 50.
A new Value-Added Tax (VAT) distribution formula is also set for implementation in 2026:
Federal Government: 10% (down from 15%)
State Governments: 55% (up from 50%)
Local Governments: 35% (unchanged)
VAT will be shared among states based on 50% equality, 20% by population, and 30% by consumption. This restructuring is expected to benefit high-consumption states like Lagos and Rivers, promoting increased internal revenue generation at the subnational level.
Financial analysts applaud the reforms for expanding the tax base while shielding low-income groups. However, data privacy advocates and financial institutions have urged for the establishment of clear operational guidelines to safeguard personal financial data and prevent misuse.
With these measures scheduled to take effect in 2026, both the government and private sector stakeholders will be monitoring their impact on tax compliance, revenue growth, and public confidence.
