1. Asked: March 31, 2026In:

    How Do Students in Nigeria File Personal Income Tax When They Have Mixed Income From School, Gifts, and Salary?

    Ochoyoda
    Ochoyoda Educator

    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 iRead more

    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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  2. Asked: March 31, 2026In:

    Do Nigerians in the Diaspora Need to File Taxes in Nigeria Without Having a Physical Business?

    Rose
    Rose Contributor Profile Credentials

    Tax in Nigeria is based mainly on RESIDENCE, not nationality. The Law Behind It Under: 👉 Personal Income Tax Act Your tax depends on: ✓ where you live ✓ where your income is sourced PART 1: DIASPORANS — DO THEY FILE TAX IN NIGERIA? Let Me Explain With a Simple Story Mama Ngozi travels to the UK. SheRead more

    Tax in Nigeria is based mainly on RESIDENCE, not nationality.

    The Law Behind It

    Under:

    👉 Personal Income Tax Act

    Your tax depends on:

    ✓ where you live
    ✓ where your income is sourced

    PART 1: DIASPORANS — DO THEY FILE TAX IN NIGERIA?

    Let Me Explain With a Simple Story

    Mama Ngozi travels to the UK.

    She now works and earns money there.

    Question:

    Will Nigeria tax her UK salary?

    👉 NO (in most cases)

    Why?

    Because:

    ✓ she is NOT resident in Nigeria
    ✓ income is NOT earned in Nigeria

    So When Will Diasporans Pay Tax in Nigeria?

    ONLY If:

    1. They earn income FROM Nigeria

    Examples:

    • rent from property in Nigeria
    • salary from Nigerian company
    • business income in Nigeria

    OR

    1. They are still considered tax resident in Nigeria

    (This depends on number of days spent in Nigeria — usually 183 days rule)

    So Final Answer (Diaspora)

    If:

    • you live abroad
    • no Nigerian income

    👉 You generally DO NOT file Nigerian PIT

    If:

    • you earn from Nigeria

    👉 You MUST file tax in Nigeria

    PART 2: NGX STOCK INVESTORS — DO YOU FILE TAX?

    Let’s Be Very Clear

    Trading on:

    👉 Nigerian Exchange Group

    does NOT automatically mean you must file tax.

    Why?

    Because in Nigeria:

    1. Capital Gains on Shares

    Currently:

    👉 Capital gains on listed shares are largely exempt
    (when traded on NGX, subject to conditions)

    2. Dividends

    Dividends are:

    ✓ already taxed at source (10% withholding tax)

    What Does This Mean?

    If You ONLY:

    • buy and sell shares
    • receive dividends

    👉 Tax is already handled

    So Do You Still File Annual Return?

    YES — if:

    • you are resident in Nigeria
    • you have other income (salary, business, etc.)

    NO (or minimal obligation) — if:

    • your ONLY income is stock trading/dividends

    Let Me Be Honest With You

    Many people think:

    “Once I invest, I must file tax”

    Not always true.

    Simple Breakdown

    Diasporan

    • No Nigerian income → No tax filing
    • Nigerian income → File tax

    NGX Investor

    • Only dividends → tax already deducted
    • active income + stocks → file return

    Final Truth

    Tax is not about:

    • where you are from

    It is about:

    ✓ where you earn
    ✓ where you live

    Let Me Leave You With This

    Whenever you’re confused about tax, ask:

    • “Where is this income coming from?”

    That one question…

    Will guide you to the correct answer every time.

    Rose Ejituru

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