By Adedamola Adedigba
For many Nigerians, the deduction of tax from monthly salaries has become a familiar reality. Yet, beyond the figures reflected on payslips, a large number of citizens still struggle to understand one important obligation which is filing of annual tax returns.
Under the Nigeria Tax Act 2025, every income earning individual in Nigeria is required to file an annual tax return, declaring earnings from the previous year. The law applies to salaried workers, self employed individuals, and people with multiple sources of income.
The policy is aimed at strengthening tax administration, improving accountability, and increasing government revenue for national development. However, despite repeated public sensitisation and the expiration of the March 31 filing deadline, concerns are growing over low compliance and limited public understanding of the process.
In January 2026, the Minister of State for Finance, Taiwo Oyedele, urged Nigerians to comply with the directive before the deadline.
“Filing tax returns on time is a civic responsibility that supports national development,” he stated.
Findings indicate that many Nigerians remain uncertain about how the process works, what documents are required, and why filing tax returns is important.
For some workers, taxation is simply viewed as an automatic deduction carried out by employers, with little understanding of personal obligations under the law.
A civil servant in Oyo State, who spoke anonymously, admitted that she has limited knowledge about tax filing despite regular deductions from her salary.
“Although my taxes are deducted from my salary and reflected on my payslip, I don’t really understand how to file my returns,” she said.
Her experience reflects the situation of many Nigerians who rely on employers to handle tax deductions but remain unaware that filing annual returns is still a separate legal responsibility.
Financial and strategic consultant, Evans Akinlolu, explained that tax filing is compulsory for all eligible citizens regardless of their profession or source of income.
“Civil servants remit taxes to the government where they are employed, while business owners pay to the state where their businesses operate,” he explained.
According to Akinlolu, one of the major requirements for tax filing is obtaining a Tax Identification Number, commonly known as TIN.
“The TIN can be linked to either a Bank Verification Number or a National Identification Number,” he noted, stressing the importance of proper identification in the process.
Experts say poor awareness, limited access to information, and the complexity of tax procedures continue to discourage compliance among many citizens, especially small business owners and informal sector workers.
Despite these concerns, financial experts insist that tax compliance remains an important civic obligation that contributes to national growth, infrastructure development, and public services.
Akinlolu further warned that failure to comply with tax regulations could attract penalties and legal consequences.
“Filing and paying taxes promptly helps individuals avoid penalties and remain on the right side of the law,” he said.
Following the expiration of the filing deadline, some states, including Lagos State and the Federal Capital Territory, have extended the filing period, giving taxpayers additional time to complete the process.
Experts also highlighted that the law provides certain reliefs and deductions that can reduce tax burdens for eligible individuals.
Financial experts say proper record keeping has now become increasingly important, especially as tax authorities continue efforts to strengthen compliance and expand the nation’s tax base.
As discussions around taxation continue, experts are calling for stronger public enlightenment campaigns to help Nigerians better understand the filing process and their responsibilities under the law.
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