NASFAT Kaduna Zone: Kaduna Main Branch Educates Members on New Nigeria Tax Law

NASFAT Kaduna Zone: Kaduna Main Branch Educates Members on New Nigeria Tax Law

Zainab Tanimu

Kaduna Northwest Nigeria

Nastrul -Lahi -L Fatih Society NASFAT Kaduna Zone in pursuance of the society’s enlightenment drive has educated it members on the new federal government tax reform policy.

The enlightenment campaign held in NASFAT mosque at NASFAT village was part of the activities lined up for NASFAT main branch’s membership day celebration .

Zonal Chairman Alhaji Saheed Popoola

Gambari in his speech commended the initiative of Kaduna main branch for deeming it necessary to educate its members. NASFAT Kaduna Zone he said has always been a pace-setter while urging them not to rest on their owls in their efforts to generating more educative programmes.

The Chairman, NASFAT Kaduna main branch, Alhaji AbdulAkeem Adeniji speaking through the Acting Chairman, Alhaji Suleiman Aliebiosu appreciated the Membership Committee for keeping it members at par.

It is first of its kind in the history of NASFAT he said. He implored the committee to continue in it strive to bringing positive change.

The Membership Secretary, Alhaji Bashir Dumoye feeling elated, promised his committee’s preparedness to do more . The membership committee’s work is not limited to only registering and keeping of records of members. They have more impactful programmes on the pipeline. He assured.

Our activity revolves around sensitisation of members and impacting on our membership. We want members to feel our existence, to feel our programme.

What we are trying to do is to create programmes and activities for the membership committee. This is why we call this, maiden edition.

The membership committee he added is extending it scope by introducing impactful programmes.

Ever before, no programme like this . What we do is register members, keep records and when they need information, we provide it for them and that is all. As membership secretary, I want to believe that activities of membership ought to be more than that.

We are involved in membership drive, sustainability, keeping intouch everything which we have not been doing before. We want to create a platform, a template for membership committee that other zones, and branches will also emulate.”

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The resource person, an expert, Alhaji Abdulazeez Olayanju, Principal partner, Abdulazeez Oladele & co in his lecture titled, “New Nigeria Tax Law: how it affects you & me”  explained some of the modalities with which one is taxed.

He urged members to always ensure that they have proper records of their businesses as that will determine who to tax and not to tax.

“It is more convincing to the tax official to know who pays what tax and who is exempted when proper records are kept by business owners.

“Even if you’re not going to pay tax . By the time you maintain your records, you would be able to show the tax authority that this is what l earn legitimately and it is not up to the threshold for me to pay tax.

Olayanju explained the difference between company and income tax. Just as the name implies,  company tax is based on the profits generated by the company within a period of one year. It is after deducting all the legitimate and genuine expenses that the balance will be taxed.The profit that is there is what they will tax.

The same goes for the  income owners.

And if you are not into any business, if it is salaries and wages, by the time they deduct all the relieves, what is left is what will be taxed. But if what is left according to the policy is not up to eight hundred thousand naira at the end of the year, you will not pay tax.

This measure reduces the burden

on Nigeria’s lowest earners and helps align tax obligations with the national minimum wage.

Explaining further, “

If you have chains of businesses, if you maintain your records keeping, it is the profit on that chains of businesses that will be taxed.

However, you must be able to show proof of records of your businesses.

Olayanju encouraged all present to take the issue of record keeping seriously. Such documentation he said will help to monitor the business’s profit or loss by tracking income and expenditure.

It will also help in identifying strengths and weaknesses in the business as such aid in making sound decisions.

Alhaji Adekunle, a seasoned accountant

answering some of the questions explained that NASFAT finds it important to keep his members informed.

He encouraged both business men and women to cultivate the habit of keeping records of their sales as that will enhance their performance.

He noted that only few business owners take stock to know how they are growing.

Some of the answers provided in the course of the lecture includes the following.

*Q1*: When will the new Nigeria Tax Act take effect?

 *A1:* The new Nigeria Tax Act takes effect from 1 January 2026.

*Q2*: Which specific individuals does the Nigeria Tax Law apply to?

 *A2*: 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

*Q3*: Will transfers and deposits into my bank account be taxed?

 *A3*: No. Moving money around (via POS, transfers, deposits, or withdrawals) is not a taxable event. What is taxed is income earned.

Q4*: I run a one man business. Do I pay personal income tax or company income tax?

 *A4*: If registered as an enterprise (business name), you pay Personal Income Tax. If registered as a limited liability company then you pay Company Income Tax.

*Q5*: I am a pensioner. Will my pension income be taxed in 2026?

 *A5*: No. Approved pension and retirement benefits are exempt from tax.

*Q6*: Who is exempt from personal income tax?

*A6*: Individuals earning the national minimum wage or less, and those earning below ₦800,000 annually, are exempt.

*Q7*: What are the new progressive tax bands?

*A7*

👉First ₦800,000 @ 0%

👉Next ₦2.2m @ 15%

👉Next ₦9m @ 18%

👉Next ₦13m @ 21%

👉Next ₦25m @ 23%

👉Above ₦50m @ 25%

It was a well coordinated and inspiring lecture as members went home more informed about the new tax policy and how best to run their businesses.

Individuals with taxable profit of ₦800,000 or less per year after the relief allowance and exemptions are now completely exempt from paying personal income tax. This measure reduces the burden on Nigeria’s lowest earners and helps align tax obligations with the national minimum wage.23 Aug 2025

On 26 June 2025, President Bola Ahmed Tinubu signed the four (4) Tax Reform Bills into law. These laws include the Nigeria Tax Act (NTA), The Nigeria Tax Administration Act (NTAA), The Nigeria Revenue Service Act (NRSA) and the Joint Revenue Board Act (JRBA), collectively referred to as “the Acts” hereafter).

The Acts comprehensively overhaul the Nigerian tax landscape to drive economic growth, increase revenue generation, improve the business environment and enhance effective tax administration across the different levels of government.