Banks, insurance firms and other financial institutions will, from January 2026, begin the reporting of monthly transactions exceeding N25m for individuals and N100m for companies to the tax authorities, The PUNCH reports.

This was stipulated in the Nigeria Tax Administration Act, recently signed into law, among the tax reform bills approved by President Bola Tinubu.

The provision, contained in Section 29 of the NTAA, is titled “Information to be delivered by bankers and others” and is part of sweeping reforms under the tax reforms expected to take effect next year.

According to the legislation, banks, insurance companies, stockbroking firms and similar institutions are now mandated to submit quarterly reports to the relevant tax authority detailing the names and addresses of new customers and, for existing ones, all transactions that reach the specified thresholds within a calendar month.

In the case of individuals, this applies to cumulative transactions of N25m or more, while for corporate entities, the threshold is set at N100m.

The approved document read, “Without prejudice to section 142 of this Act, every bank, insurance company, stock broking firm, or any other financial institution, shall prepare, with or without demand by the relevant tax authority, quarterly returns to the relevant tax authority specifying the names and addresses of (a) New customers; and (b) existing customers in the case of — (i) an individual, all transactions where the cumulative transactions in a month amount to N25,000,000 or more, or (ii) a body corporate, all transactions where the cumulative transactions in a month amount to N100,000,000 or more.”

The law also imposes additional obligations on banks and financial institutions, assigning them the role of third-party agents in the recovery of unpaid tax debts.

The NTAA empowers the relevant tax authority to delegate the responsibility for recovering outstanding tax liabilities to such third parties, including financial institutions, debt recovery practitioners or any other accredited entities—provided that all available legal steps have been exhausted.

The Act further specifies that where debts are linked to failed banks, courts shall have exclusive jurisdiction over all matters relating to the recovery of such debts, regardless of any existing agreements or legal frameworks.

It states that “the court shall have exclusive jurisdiction to hear and determine all matters brought before it concerning the recovery from any person of any debt owed to a failed bank, which remains outstanding as at the date of closure of the business of the failed bank”.

In cases where the debt is considered substantial, the tax authority may transfer the entire or partial debt to an approved third party to pursue recovery, but only after notifications, payment demands, and enforcement actions have been fully carried out.

The PUNCH also observed that Virtual Asset Service Providers in Nigeria will also be required to submit detailed monthly transaction reports to tax authorities under the new Nigeria Tax Administration Act, 2025, which comes into effect in January 2026.

The provision, contained in Section 25 of the Act, mandates that any taxable person engaged in services such as the exchange, custody, or management of virtual assets must provide comprehensive disclosures on transactions carried out during the reporting period.

According to the Act, VASPs are expected to submit these reports to the relevant tax authority, whether or not they have been served a notice.

The returns must include a description of the virtual asset services provided during the month, the transaction dates, the type and value of the assets involved, and the total sales value.

Also, service providers are required to disclose the names, addresses, phone numbers, email addresses, and tax identification numbers of their customers. Where the customer is an individual, the national identification number must also be supplied.

The legislation goes further to demand that the identity and contact information of any counterparty involved in the transaction be included in the report. The law also gives the tax authority powers to demand additional information at any time, with or without prior notice, and in any format it prescribes.