Here’s a clear, beginner‑friendly explanation of how personal income tax works for different kinds of people in Nigeria — including Abuja (Federal Capital Territory) and Lagos — and how to file it

1) How Personal Income Tax Works in Nigeria

Personal Income Tax (PIT) is imposed on the income of individuals who earn money from work, business, rentals, investments, etc

This tax is mostly administered by the State Internal Revenue Service (SIRS) where you live — e.g., Lagos State Internal Revenue Service (LIRS) for Lagos, and FCT Internal Revenue Service for Abuja.

The Federal Inland Revenue Service (FIRS) only handles some specific categories (e.g., military personnel, police, foreign service officers, and certain Abuja residents

There are two main ways PIT is collected:

• PAYE (Pay‑As‑You‑Earn) — for employees through salary deductions; the employer deducts it monthly. �

• Direct Assessment / Self‑Assessment — for self‑employed persons or individuals with non‑employment income; you declare your income and pay yourself.

LIRS – Lagos Internal Revenue Service

2) Housewife or Individual with No Work and No Income

Do you have to file tax?

If you earn no income at all, you do not owe income tax. Tax is on income received.

However, modern tax laws (like the 2026 changes) encourage even people with no income to file a “nil” return — especially if you own a Tax Identification Number (TIN) — so that authorities have records and don’t mistakenly assume gifts or allowances are taxable income.

How to file if you want to be compliant anyway

Get a TIN (if you don’t already have one) with your State IRS (LIRS if Lagos).

Go to the State’s tax portal (e.g., eTax for LIRS).

Choose “Personal Income Tax Return” and submit a nil or zero‑income declaration.

Submit by the deadlines (often March 31 each year).

3) Students (18+ and Not Working / Under Parents’ Care)

When do you file?

If you have no taxable income, you don’t owe tax.

However, like the housewife situation above, you can file a nil return to have an official tax record — especially important if you later start earning (salary, freelance work, online income, etc.).

How to file if you earn some income

If you start earning (even part‑time or online income), you must:

Register for a TIN.

File a personal income tax return (Direct Assessment) to declare income earned and pay any tax due.

Do this annually by the state’s filing deadline.

4) People Living in Abuja — Filing Personal & Company Income Tax

Personal Income Tax (Abuja Residents)

Abuja residents (FCT) are generally taxed by the FCT Internal Revenue Service.

If you earn income (salary, business income, rent, investment income):

Register with FCT IRS and get a TIN.

Choose the filing type:

PAYE (your employer deducts and remits for you).

Direct Assessment (for non‑employment income).

Submit your annual personal tax return digitally or at an IRS office.

Pay any tax due.

Company Income Tax (for Businesses in Abuja or Anywhere in Nigeria)

Company income tax is separate from personal income tax and is administered by the Federal Inland Revenue Service (FIRS), not state revenue services.

Companies (limited liability companies) must:

Register for a Corporate TIN with FIRS.

File Company Income Tax Returns annually (usually within 6 months of the end of their financial year).

Pay tax on profits after allowable deductions.

5) Practical Steps to File Tax in Lagos or Abuja

Personal Income Tax (General Steps)

Get a Tax Identification Number (TIN) with the appropriate IRS.

Log into your State’s tax portal (e.g., LIRS eTax for Lagos).

Complete the annual income tax return form — even if zero income.

Upload required documents (if any).

Submit and pay any tax due by the deadline (often March 31)

Key Notes

If you earn below the taxable threshold or have no income, you won’t pay tax but can still file a nil return for compliance

Employers deduct and remit tax for employees under PAYE, but employees must still file annual returns in many states.

Summary

Situation

Must File?

How

Housewife with no income

Tax not owed; can file nil

Register TIN + file nil return

Student under parents (no income)

Tax not owed; can file nil

Same as housewife

Student with income

Yes

Register + file Direct Assessment

Abuja resident (salary)

Yes

PAYE + annual return

Abuja resident (business)

Yes

Register + file Direct Assessment

Company income tax

Yes

File with FIRS

If you want, I can provide links and step‑by‑step guidance for the exact online portals and forms for Lagos (LIRS) and Abuja (FCT IRS). That will make the actual filing process very clear.

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Your situation is actually very common, and the good news is: your tax filing will be simple and likely zero tax 👍

Let’s break it down clearly.

First — What Counts as Taxable Income?

Under the Personal Income Tax Act, only taxable income is declared, such as:

✅ Salary

✅ Business income

✅ Freelance income

✅ Rental income

✅ Professional income

But money from friends and family is NOT taxable.

So:

Money received through OPay from family/friends → ❌ Not taxable

Gifts/allowances from relatives → ❌ Not taxable

School support → ❌ Not taxable

You do not declare these.

Your Timeline (Based on What You Said)

January 2025 — August 2025

You were a student

Receiving money from friends & family

No employment

👉 Result: No taxable income

September 2025 — December 2025

You started receiving:

Salary (via Sterling Bank)

TVET stipend

👉 These may be taxable depending on amount

What You Should File

You will file Annual Return for 2025:

Step 1: Declare Your Status

You file as:

Part-year employee

Income from September — December only

Step 2: What You Declare

You declare:

Salary received (Sept–Dec 2025)

TVET stipend (if taxable)

You do NOT declare:

OPay transfers from friends

Family support

School money

Most Likely Outcome

Because you worked only 4 months, your income may be below taxable threshold.

Nigeria gives Consolidated Relief Allowance:

₦200,000 OR

1% gross income

Plus 20% relief

This often results in zero tax for low income earners.

Where You File

You file with your state of residence:

If you live in Lagos → Lagos State Internal Revenue Service

If Rivers → Rivers IRS

If Osun → Osun IRS

What You Should File (Simple Answer)

You will likely file:

✅ Nil Return (if income is low)

or

✅ Part-year salary return

Documents to Prepare

Just get:

Salary amount (Sept–Dec 2025)

Employment start date

TIN (if available)

That’s all.

You’re actually in a low-risk category — no need to worry.

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You’re not alone — many small business owners feel scared after registering a Limited Liability Company (LLC).

But the truth is: LLC is not as complex as it sounds, especially for a small poultry business like yours 🐔🥚

Let me simplify it clearly.

First — You Did NOT Make a Mistake

Registering an LLC actually gives you advantages:

✅ Protects your personal assets

✅ Makes your business more credible

✅ Easier to access loans & grants

✅ Better for long-term growth

So you actually made a smart move, not a bad one.

What Makes LLC “Look” Complex

People usually get scared because of:

Company Income Tax

Annual Returns

Accounting requirements

Separate filings

But for small businesses, Nigeria has made it much easier now.

Good News for Small Poultry Farmers (Very Important)

Under Nigerian tax laws:

If your company earns less than ₦25 million per year:

👉 You pay 0% Company Income Tax

This is under the Companies Income Tax Act

So if your poultry business is still small:

You may NOT pay company income tax at all 🎉

You only:

File returns

Keep simple records

That’s all.

What You Actually Need To Do (Simple Version)

As a small poultry LLC, you only need to worry about:

1. Annual Returns to CAC (Once Per Year)

You file with

Corporate Affairs Commission

This is just:

Confirming your company still exists

Updating details

This takes 5–10 minutes.

2. Company Tax Filing (Once Per Year)

File with

Federal Inland Revenue Service

Even if:

No profit

Small income

You can file zero returns.

3. Personal Income Tax (Yourself)

You still file your personal tax under

Personal Income Tax Act

This is separate from your company.

What You DO NOT Need (Right Now)

As a small poultry farmer, you likely do not need:

❌ Complex accounting

❌ Auditor (for now)

❌ Tax consultant (optional)

❌ Corporate secretary (for small firms)

My Honest Advice (Best for Small Poultry Business)

Keep it simple:

Keep sales records (egg sales)

Keep expense records (feed, birds, drugs)

File once per year

That’s all.

You’re actually in a good position now.

Many small businesses later upgrade to LLC — you already did early 👍

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Yes — you can open a corporate/business account with a fintech bank in Nigeria. Many fintechs now offer business and corporate accounts for registered companies.

Fintech Banks That Offer Corporate / Business Accounts

Common ones include:

Kuda Bank

Moniepoint

OPay

PalmPay

These fintechs now operate nationwide after their licences were upgraded by the Central Bank of Nigeria, allowing them to offer broader financial services including business accounts.

Example: Opening a Fintech Corporate Account

1. Kuda Business Account

Kuda Bank allows you to:

Open business account from your phone

Create multiple business accounts

Send invoices and receive payments

Manage business expenses

You can open the account quickly online without paperwork, and even register your company through the platform.

2. OPay Business Account

With OPay:

Download app

Select Merchant/Business account

Upload ID

Add business details

Get approval (often within 24 hours)

Requirements for Fintech Corporate Account

Usually you need:

CAC certificate

RC Number

TIN (sometimes optional)

Director ID

Business address

Phone number

(Some fintechs allow business name account even without full corporate documents.)

Important Advice (Very Important)

Fintech banks are:

Fast and easy ✅

Good for daily transactions ✅

But for serious corporate business, many experts recommend:

Use Fintech + Traditional Bank together

Because:

Some large companies prefer traditional banks

Some fintechs have transfer limits

Corporate credibility sometimes higher with traditional banks

Best Strategy (Recommended)

Use:

Fintech bank → Daily transactions

Traditional bank → Large payments & credibility

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Here is a simple step-by-step guide to file Lagos State Personal Income Tax (PIT) using your smartphone.

Since you already have:

✅ Tax ID (13 digits)

✅ Payer ID (N-…)

You’re already 90% done 👍

Step-by-Step: File Lagos State PIT Using Smartphone

Step 1: Open LIRS Tax Portal

Go to the official Lagos State Internal Revenue Service portal:

👉 https://etax.lirs.net

You can open this directly from:

Chrome

Safari

Opera Mini

(on your phone)

Step 2: Click “Login”

On the homepage:

Tap Login

Enter:

Tax ID (13 digits)

Password (or create one if first time)

If it’s your first time: Tap Register / Create Account

Step 3: Complete Your Profile

Fill in:

Full name

Phone number

Address (Lagos address)

Occupation

Employer (if applicable)

Then tap Submit

Step 4: Go to “Returns Filing”

After login:

Tap: 👉 Returns

Then tap: 👉 File Annual Return

Step 5: Choose Tax Year

Select:

2025 Tax Year (for 2026 filing)

Then tap Continue

Step 6: Enter Your Income Details

You’ll see fields like:

If Salary Worker:

Annual salary

Allowances

Bonuses (if any)

If Self-Employed:

Business income

Estimated yearly income

Fill accordingly.

Step 7: System Calculates Your Tax Automatically

Once you enter your income:

The system will:

Calculate tax

Show amount payable

Show tax summary

Just tap Submit

Step 8: Submit Your Return

Tap: 👉 Submit Return

Then download:

Acknowledgement slip

Filing confirmation

You’re done ✅

If You Already Pay PAYE Through Employer

Even if your company deducts tax:

You still must file annual return (Very important).

Just:

Select Employer deduction

Submit

Deadline (Important)

As you mentioned correctly:

📅 Deadline Extended to April 14, 2026

So you still have time.

Common Problems (and Fix)

If Login Doesn’t Work

Try:

Reset password

Use “Forgot password”

If Portal Not Loading

Try:

Use Chrome

Turn off VPN

Try at night (less traffic)

Since you’re already organized (you have TIN and Payer ID), you can finish this in 5–10 minutes.

If you’d like, I can also:

Help you calculate minimum tax

Show how to file zero income legally

Help you avoid penalty

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