PAYE in Nigeria means: Pay-As-You-Earn It is the system the government uses to collect income tax directly from salary earners every month. Instead of waiting for workers to pay tax themselves at the end of the year, employers deduct the tax automatically from salaries and remit it to the tax authorRead more
PAYE in Nigeria means:
Pay-As-You-Earn
It is the system the government uses to collect income tax directly from salary earners every month.
Instead of waiting for workers to pay tax themselves at the end of the year, employers deduct the tax automatically from salaries and remit it to the tax authority.
So when you see PAYE on your payslip, it means:
“Income tax deducted from your salary.”
Why PAYE Exists
The government uses PAYE to fund public services such as:
Roads
Security
Schools
Hospitals
Government operations
It is compulsory for eligible salary earners under Nigerian tax law.
Why Employers Deduct It Automatically
Employers are legally required to:
Calculate employees’ taxes
Deduct the PAYE monthly
Send it to the state tax authority
So your employer acts like a tax collection agent for government.
That is why:
you usually never pay PAYE manually yourself as an employee.
PAYE Is Different From Pension and NHF
Many beginners mix them together because all appear on payslips.
But they are different.
Deduction
Purpose
PAYE
Income tax to government
Pension
Retirement savings
NHF
Housing contribution
NHIS/Health Insurance
Healthcare coverage
What Is Taxable Income?
Government usually does NOT tax your full salary directly.
First:
approved deductions and reliefs are removed.
What remains becomes:
Taxable income
PAYE is calculated on that taxable income.
Common Deductions That Reduce PAYE Legally
Some deductions legally reduce taxable income.
Examples:
Pension contribution
NHF contribution
Approved life insurance
Consolidated Relief Allowance (CRA)
Example Using ₦300,000 Salary
Suppose monthly salary is:
300,000
Step 1 — Pension Deduction
Employee pension is usually 8%.
So:
300,000×8%=24,000
Remaining income:
300,000-24,000=276,000
Step 2 — NHF Deduction
Suppose NHF deduction is:
5,000
Remaining:
276-5,000=271,000
Step 3 — Apply Tax Relief (CRA)
Nigeria gives workers a tax relief called:
Consolidated Relief Allowance (CRA)
Formula:
Max(200,000,1% Gross Income)+ 20% Gross Income
This reduces taxable income further.
Step 4 — Apply PAYE Tax Rates
Nigeria uses progressive tax rates.
That means:
higher income → higher effective tax.
Current annual PAYE bands are approximately:
Annual Taxable Income
Tax Rate
First ₦300,000
7%
Next ₦300,000
11%
Next ₦500,000
15%
Next ₦500,000
19%
Next ₦1.6 million
21%
Above that
24%
Important Point
The rates apply gradually.
It is NOT:
“Everything taxed at one percentage.”
Instead:
different portions of income are taxed at different rates.
Example Comparison
Employee Earning ₦300,000 Monthly
After deductions and reliefs:
taxable income becomes lower.
PAYE:
moderate.
Employee Earning ₦500,000 Monthly
Even after deductions:
taxable income remains larger.
PAYE:
higher.
So PAYE depends on income level and deductions.
Does Everybody Pay Same Percentage?
No.
PAYE differs because of:
salary size
pension contribution
NHF participation
insurance relief
tax reliefs
payroll structure
So two people earning similar salaries can still pay different PAYE.
What Deductions Usually Appear on Payslip?
Common items:
Item
Meaning
Gross Salary
Full salary before deductions
PAYE
Income tax
Pension
Retirement savings deduction
NHF
Housing contribution
NHIS
Health insurance
Net Salary
Final take-home pay
What Usually Does NOT Reduce PAYE
Many people misunderstand this.
Things like:
personal rent
food expenses
loan repayments
airtime
cooperative savings
usually do not directly reduce PAYE legally.
Simple Analogy
Imagine your salary is a basket of oranges.
Before government taxes it:
pension removes some oranges
NHF removes some
tax relief removes some
The oranges left are:
taxable income
Government taxes only those remaining oranges.
Why PAYE Is Important
PAYE helps government collect taxes steadily instead of waiting yearly.
For workers:
it spreads tax payment monthly,
making it easier than paying a huge amount once.
How Employers Know the Correct Amount
Most companies use payroll systems/software.
The software:
Calculates gross income
Removes deductions
Applies tax reliefs
Computes annual tax
Divides it monthly
That monthly amount becomes the PAYE deduction on your payslip.
How to Check If PAYE Looks Correct
Ask HR/payroll for:
PAYE computation sheet
taxable income breakdown
Check whether:
pension was deducted first
CRA was applied
NHF was recognized
tax bands were used correctly
Key Concepts to Remember
PAYE
Monthly salary tax deducted by employer.
Pension
Retirement savings, not government tax.
Examples of PFAs:
Stanbic IBTC Pension Managers
ARM Pension Managers
NHF
Housing contribution managed through:
fmbn.gov.ng
Taxable Income
Income left after approved deductions and reliefs.
Net Salary
What finally enters your bank account.
For official guidance:
firs.gov.ng
pencom.gov.ng
Yes. Under Nigerian tax law, certain approved deductions and reliefs can legally reduce the amount of PAYE tax a salary earner pays. The key idea is: PAYE is not always calculated on your full salary. The government first allows specific deductions and tax reliefs. The remaining balance becomes yourRead more
Yes. Under Nigerian tax law, certain approved deductions and reliefs can legally reduce the amount of PAYE tax a salary earner pays.
The key idea is:
PAYE is not always calculated on your full salary.
The government first allows specific deductions and tax reliefs. The remaining balance becomes your taxable income.
So if two employees earn the same salary but one has more approved deductions, that person can legally pay less PAYE.
The Main Deductions That Reduce PAYE in Nigeria
The most common approved deductions are:
Deduction
Usually Reduces PAYE?
Notes
Pension contribution
Yes
Major PAYE reducer
NHF contribution
Yes
Approved deduction
Life assurance premium
Yes
If properly structured
Consolidated Relief Allowance (CRA)
Yes
Automatic major tax relief
National Health Insurance
Sometimes depends on structure
Not always direct PAYE relief
Rent expenses
No direct PAYE rent relief currently
Common misconception
1. Pension Contributions
This is the biggest and most common PAYE reduction.
Under the Pension Reform Act:
Employee minimum contribution = 8%
Employer minimum contribution = 10%
Managed through PFAs like:
Stanbic IBTC Pension Managers
ARM Pension Managers
Leadway Pensure
Example
Monthly salary:
500,000
Employee pension deduction:
500,000×8%=40,000
So PAYE is computed after removing ₦40,000 first.
New taxable base:
500,000-40,000=460,000
That reduces PAYE legally.
2. NHF (National Housing Fund)
NHF contributions can also reduce taxable income.
Managed through:
fmbn.gov.ng
Contribution is usually:
2.5% of basic salary
Example
Suppose NHF deduction:
10,000
Then taxable income reduces further.
3. Life Assurance Premium
Approved life insurance premiums may qualify for tax relief.
This generally applies when:
Policy is legitimate
Properly documented
Structured under approved tax rules
Example providers:
leadway.com
aiicoplc.com
4. Consolidated Relief Allowance (CRA)
This is one of the largest tax reliefs in Nigeria.
Most employees benefit automatically.
CRA formula:
Max(200,000, 1% Gross Income) +20% Gross Income
This significantly reduces taxable income before PAYE rates are applied.
Common Misunderstanding About Rent Relief
Many people think:
“Paying house rent reduces PAYE.”
Usually, ordinary personal rent expenses do NOT directly reduce PAYE under current Nigerian PAYE rules.
So:
Paying ₦1 million yearly rent does not automatically create tax relief.
What About Health Insurance?
This depends on:
Employer structure
Payroll arrangement
Tax treatment
Employer-provided health insurance may already be treated favorably in payroll.
But paying personal hospital bills yourself normally does not reduce PAYE directly.
How Deductions Reduce Tax
The process is:
Start with gross salary
Remove approved deductions
Apply reliefs
Tax the remaining amount
Smaller taxable income:
Smaller PAYE.
Full Simple Example
Suppose:
Monthly salary:
500,000
Pension
40,000
Remaining:
460,000
NHF
10,000
Remaining:
450,000
Life Insurance
5,000
Remaining:
445,000
Then CRA is applied before PAYE rates.
So government taxes only part of the original salary.
Can Employers Automatically Apply These Deductions?
Yes.
Most formal employers automatically handle:
Pension
CRA
NHF
PAYE calculation
Payroll software computes everything monthly.
Employees often do not see the full calculation.
Is There a Limit to Reliefs?
Yes, depending on:
Type of deduction
Tax law provisions
Payroll structure
Documentation
Examples:
Pension has regulated contribution structure
CRA follows a legal formula
Insurance relief depends on valid premiums
How to Know If You’re Paying Too Much PAYE
You may be overpaying if:
Pension is not deducted before PAYE
CRA is not applied
NHF is ignored
Payroll is outdated
Your employer misclassifies allowances
Your records are incorrect
Signs to Check on Your Payslip
Look for:
Gross salary
Pension deduction
NHF deduction
PAYE deduction
Net salary
If PAYE looks unusually high:
ask HR/payroll for the taxable income computation.
Two People Can Pay Different PAYE
Yes.
Even with equal salaries.
Example:
Item
Employee A
Employee B
Salary
₦500k
₦500k
Pension
Lower
Higher
NHF
No
Yes
Insurance
No
Yes
Taxable Income
Higher
Lower
PAYE
Higher
Lower
So approved deductions affect PAYE directly.
Important Warning
Not every deduction on your payslip reduces tax.
Examples that usually do NOT reduce PAYE:
Cooperative savings
Loan repayment
Food expenses
Transport spending
Airtime deductions
Personal investments
Only deductions recognized by tax law reduce taxable income.
Summary
Main legal PAYE reducers in Nigeria:
Pension contribution
NHF contribution
Approved life assurance
CRA
How they work:
They reduce taxable income before tax rates are applied.
Result:
More approved deductions → lower taxable income → lower PAYE.
For official guidance:
firs.gov.ng
pencom.gov.ng
fmbn.gov.ng
Here’s a clear, step‑by‑step guide to filing your Personal Income Tax (PIT) online for Osun Internal Revenue Service so you don’t have to physically visit their office. This applies to individual residents (salaried or self‑employed) who must file before March 31 each year under the Personal IncomeRead more
Here’s a clear, step‑by‑step guide to filing your Personal Income Tax (PIT) online for Osun Internal Revenue Service so you don’t have to physically visit their office. This applies to individual residents (salaried or self‑employed) who must file before March 31 each year under the Personal Income Tax Act.
🧾 1. Confirm What You’re Filing (Who Must File)
You must file PIT returns if:
You earn income from employment (PAYE) — salary, allowances, bonuses.
You are self‑employed or earn income outside employment (Direct Assessment).
You earn from other sources (rental income, side gig, consultancy, etc.).
Every taxpayer is obligated to file annual returns by March 31st of each year for income earned in the preceding year.
🔑 2. Get Your Taxpayer Identifiers
‣ Tax Identification Number (TIN)
If you don’t have a TIN:
Visit the JTB TIN application via the OIRS website.
Complete the individual TIN application form online.
Submit and download/print your TIN — this is required for filing.
Note: Some state e‑payment portals also let you apply for a TIN during registration.
‣ Payer ID
This is a unique reference used for payment and filings.
If already registered, you can retrieve your Payer ID using your phone number or from a prior Automated Revenue Receipt (ARR)
If not registered, you must create a profile on the OIRS tax portal (next step).
🌐 3. Register / Create Your Online Tax Profile
Use the state’s electronic tax portal to register yourself if you haven’t already:
Open the link and fill in the details (name, contact, TIN, NIN/BVN if required).
Submit and wait for confirmation; you’ll receive your Payer ID and login credentials.
📌 Save these securely — you’ll need them for payment and filing.
💸 4. Calculate and Pay Any Tax Due
Before you submit your return, determine your tax. For individuals:
Salaried workers under PAYE: your employer typically deducts your tax monthly.
Self‑employed or direct assessment: you must compute your gross income and liability yourself.
Payments can be made online through the same tax portal or affiliated e‑payment system using your Payer ID, Agency & Revenue Codes, and correct amount.
Ensure you keep the payment receipt(s) — they’ll support your filing.
📄 5. Prepare Your Annual Tax Return
‣ Download the Tax Return Template
Go to the Annual Returns / Individual Annual Tax Returns section on the OIRS site and download the Excel return template.
Template includes space for:
Osun Internal Revenue Service
PAYE income/tax (if employed)
Direct assessment (self‑employment income)
Withholding tax (WHT) credits
Relief/deductions as allowed by law
Fill the form completely and accurately.
📤 6. Submit Your Return Online
There are two ways to submit:
Method A — Online Upload (Preferred)
Log into the tax portal using your credentials.
Go to the Annual Returns / Individual Tax Returns section.
Upload your completed Excel form.
Attach evidence of payments and identification as required.
Submit and retain the acknowledgment/confirmation.
Ideally this is fully online without going to a tax office.
Yes — you should still file. But… 👉 you will file what is called a NIL RETURN What Is NIL Return? It simply means: 👉 “I earned NO taxable income last year” Let Me Explain With a Simple Story Mama Ngozi didn’t sell tomatoes throughout 2025. At the end of the year… She still goes to report: 👉 “I madeRead more
Yes — you should still file. But… 👉 you will file what is called a NIL RETURN What Is NIL Return? It simply means: 👉 “I earned NO taxable income last year” Let Me Explain With a Simple Story Mama Ngozi didn’t sell tomatoes throughout 2025. At the end of the year… She still goes to report: 👉 “I made nothing” That is: ✓ compliance
✓ no penalty The Authority You’ll Use 👉 Lagos State Internal Revenue Service Oya… Let’s Do It Step-by-Step (Using Your Phone) STEP 1: Open the Website On your phone browser: 👉 Go to: https://lirs.net STEP 2: Click “eTax / Self-Service Portal” Look for: • eTax
• Taxpayer Login Tap it. STEP 3: Login Enter: • TIN (your tax ID)
• Payer ID
• Password If You Don’t Have Password Click: 👉 “Forgot Password” Reset it. STEP 4: Go to “File Annual Return” After login: Tap: 👉 “Annual Returns”
or
👉 “File Return” STEP 5: Select Year Choose: 👉 2025 STEP 6: Enter Income This is the key part Since you were unemployed: 👉 Enter: • Income = ₦0 STEP 7: Confirm NIL Return There is usually an option like: ✓ “No Income”
✓ “Nil Return” Select it. STEP 8: Submit Tap: 👉 Submit STEP 9: Download Proof Very important: • screenshot confirmation
• download acknowledgment STEP 10: Payment 👉 No payment required Because: ✓ no income = no tax Important Warning Do NOT include: • money from family
• gifts
• random transfers Those are: 👉 NOT taxable Common Mistakes to Avoid • not filing at all
• assuming “no income = no action”
• rushing submission
• not saving proof Deadline Reminder 👉 Filing deadline: April 14, 2026 Let Me Be Honest With You Government mainly wants: ✓ record
✓ compliance Even if you earned nothing. Final Truth Filing tax when unemployed is simple: 👉 Declare zero
👉 Submit
👉 Keep proof Let Me Leave You With This Tax is not only about paying money. It is also about: ✓ staying compliant Once you understand that… You will never be confused again.
If you're in Anambra State and working in the construction industry, your tax filing is usually done through Direct Assessment (Self-Employed Personal Income Tax) — not based on total money entering your account, but based on your profit (after deducting client expenses). Let me break it down clearlRead more
If you’re in Anambra State and working in the construction industry, your tax filing is usually done through Direct Assessment (Self-Employed Personal Income Tax) — not based on total money entering your account, but based on your profit (after deducting client expenses).
Let me break it down clearly 👇
1. First — Understand What You Should Be Taxed On
Since you said:
“Most money to me are for clients money to buy materials and pay labour”
You DO NOT PAY TAX on:
Client money for materials
Labour payments
Transport for project
Site expenses
You ONLY PAY TAX on:
Your profit
Your management fee
Your commission
Your contractor margin
Example:
Project Value = ₦5,000,000
Materials = ₦3,800,000
Labour = ₦800,000
Your Profit = ₦400,000
👉 You are taxed on ₦400,000 only (not ₦5M)
This is very important for construction professionals.
2. Where To File in Anambra State
You can file through Anambra State Internal Revenue Service (AIRS) which is responsible for assessing and collecting personal income tax in the state.
airs.an.gov.ng
You can file:
Option A — Online
Use the official portal: https://tax.services.an.gov.ng
anambrastate.gov.ng
Option B — Visit Tax Office (Recommended for First Time)
You can visit any of these:
Revenue House Awka
Anambra State Board of Internal Revenue
Tax Office
They will help you file Direct Assessment.
3. Documents You Should Take
Go with:
✔ Bank statement (optional but useful)
✔ Project records (even rough notebook is fine)
✔ ID card (NIN or Voter card)
✔ Phone number
✔ Address
You don’t need CAC if you’re operating personally.
4. How They Calculate Your Tax (Simple Method)
Usually they ask:
What type of construction work?
How many projects last year?
Your estimated profit
Then they compute tax using Personal Income Tax rates.
Typical Example:
Profit ₦1,500,000 yearly
Tax may be around:
₦30,000 — ₦90,000 yearly (approx depending on reliefs)
5. Deadline (Important)
The Anambra IRS extended the 2026 filing deadline to April 30, 2026, giving taxpayers extra time to submit returns. �
Punch Newspapers +1
So you’re still within time.
6. Pro Tip (Very Important for Construction Professionals)
Start keeping simple records like:
Project
Client
Cost
Labour
Profit
House Build
Mr John
5M
800k
400k
Even simple notebook is enough.
This helps you:
Pay less tax legally
Avoid over-assessment
Get Tax Clearance Certificate (TCC)
Here’s a clear, up‑to‑date explanation of tax filing deadlines in Rivers State, Nigeria and how you can file your personal income tax return easily and correctly: 📅 Tax Filing Deadline in Rivers State Rivers State requires individuals to file their annual Personal Income Tax returns each year. WhileRead more
Here’s a clear, up‑to‑date explanation of tax filing deadlines in Rivers State, Nigeria and how you can file your personal income tax return easily and correctly:
📅 Tax Filing Deadline in Rivers State
Rivers State requires individuals to file their annual Personal Income Tax returns each year. While the state hasn’t widely published a specific universal deadline like some other states, past official notices indicate that:
Annual returns were expected to be filed by 31 January with penalties for late filing.
Extensions (in the past) have been issued for PAYE annual returns by Rivers State IRS (RIVTAMIS)
🔎 What this means for you in 2026:
Although exact dates for this year may not yet be public, most Nigerian states align with the 90‑day window after the end of the tax year (i.e., on or before 31 March), as is common under the Nigeria Tax Administration Act (NTAA) for individual filings. This alignment has been confirmed by other states like Lagos reminding taxpayers to file by 31 March.
👉 Best practice: aim to file your Rivers State annual Personal Income Tax return by 31 March 2026 for income earned in the 2025 assessment year to avoid penalties.
🧾 How to File Your Personal Income Tax Without Mistakes
Rivers State uses an online tax system called RIVTAMIS (Rivers State Tax Management Information System)
You’ll receive a RIVTIN (Tax ID) — this identifies you for Riverside tax purposes.
Gather Your Income Records
From employment: your payslips or a certificate showing PAYE deducted (your employer remits this).
From your side hustle: bank statements, sales invoices, receipts — these show business income.
Access the Filing Section
Log in to RIVTAMIS with your credentials and select Annual Personal Income Tax Return.
Complete the Tax Return
Enter your total income from all sources (salary + side hustle).
Add allowable reliefs/deductions (pension, NHF, life assurance, etc.).
The system will compute your total taxable income and tax payable.
Review & Submit
Double‑check entries for accuracy.
Upload documents if required by the portal.
Pay Any Tax Due
Pay electronically through the portal or at any of the designated banks listed on RIVTAMIS.
Download Your Tax Clearance Certificate (TCC)
After filing and payment, you can download your TCC as proof of compliance.
🧠 Tips to Avoid Mistakes
✔ Separate personal and business income records — don’t mix personal expenses with business transactions.
✔ Always save receipts and documentation for income and allowable deductions.
✔ File early — don’t wait until the last week before the deadline.
✔ Check the portal’s help guides and calculators to verify your computation before submission.
⚠️ Penalties for Late Filing
Historically, Rivers State has imposed penalties for returns filed after the due date.
Filing after the deadline can lead to monetary fines or enforcement actions by the tax authority.
📌 Summary
Requirement
Information
Likely Deadline
By 31 March 2026 (for tax year 2025)
Filing Platform
RIVTAMIS (online portal)
What to Include
Salary income + side hustle income
Required ID
RIVTIN (Taxpayer ID)
Key Action
File early to avoid penalties
If you want, I can give you a checklist with all the documents and numbers you’ll need before logging into RIVTAMIS so you don’t miss anything. Just ask!
Tax filing is always done AFTER the year has ended. Not during the year. Let Me Explain With a Simple Story Mama Ngozi sells tomatoes throughout 2025. From January to December: • she is making money • keeping records Government does NOT disturb her during the year. Then What Happens? At the END of tRead more
Tax filing is always done AFTER the year has ended.
Not during the year.
Let Me Explain With a Simple Story
Mama Ngozi sells tomatoes throughout 2025.
From January to December:
• she is making money
• keeping records
Government does NOT disturb her during the year.
Then What Happens?
At the END of the year…
She now comes and says:
👉 “This is what I made in 2025.”
That is when tax is calculated and filed.
Oya… Relax Let Me Explain
How Tax Timing Works (Very Important)
2025 Income
You worked, earned, and did business in:
👉 January – December 2025
When Do You File?
👉 In 2026
Why?
Because:
✓ the year must finish first
✓ total income must be known
So What Is Happening Now?
Even though a new tax law started in 2026…
👉 you are currently filing for 2025 income
Let Me Break It Down Simply
2025 = Income Year
2026 = Filing Year
What About the New Tax Law?
The new law affects:
👉 income earned from 2026 onward
Meaning:
• 2025 income → old rules
• 2026 income → new rules
Let Me Be Honest With You
Many people think:
“New law = immediate filing”
That is NOT how tax works.
Simple Analogy
Think of school.
You:
• attend classes in 2025
• write exams after finishing
Before we start… Lagos State Government has extended the tax filing deadline to April 14, 2026. So if you were rushing before, relax… But don’t delay again ooh, use this extra time wisely. Let Me Explain.. Imagine Mama Ngozi sells tomatoes in Lagos. One day she hears: “Tax deadline is here ooh!, It'Read more
Before we start…
Lagos State Government has extended the tax filing deadline to April 14, 2026.
So if you were rushing before, relax…
But don’t delay again ooh, use this extra time wisely.
Let Me Explain..
Imagine Mama Ngozi sells tomatoes in Lagos.
One day she hears:
“Tax deadline is here ooh!, It’s on the 31st of March ooh!”
She panics:
“Ah! I don’t understand this thing o…”
If you feel like Mama Ngozi, relax.
As your Financial Literacy Advocate, I will break it down step by step.
First… What Exactly are You Are Filing?
You are NOT filing 2026 tax.
You are declaring the money you earned from:
January – December 2025
That is what Lagos State wants.
Here’s a Step by Step Process to File your Personal Income Tax Annual Returned in Lagos
STEP 1: Get Your TIN (Tax Identification Number)
Go to Google and search:
Tax Identification Number in Nigeria
Open the Nigeria Revenue Service official portal: taxid.nrs.gov.ng
Enter your NIN
Enter your Date of Birth
Generate your TIN
This is your tax identity. Keep it safe.
STEP 2: Create Your Lagos Tax Account (LIRS)
Go to: etax.lirs.net
Create an account using:
Your BVN (recommended)
Your personal details
Then generate your:
Lagos Payer ID
Note:
Individuals = starts with N-
Companies = starts with C-
STEP 3: Login to Your Dashboard
Use:
Your newly created Payer ID
Your Password
STEP 4: File Your Annual Return
Click:
“File Annual Return”
VERY IMPORTANT (This is Where Many People Make Mistake)
If you earn:
₦100,000 per month
Do NOT enter ₦100,000.
Multiply it:
₦100,000 × 12 = ₦1,200,000
That is your annual income.
This applies to Salary Earners and Business Owners, including Freelancers or Content Creators… You are to pay from your Net Income.
STEP 5: Add Other Income (If Any)
You may see:
Rent
Business income
Dividends
If you have them, include them
If not, skip
STEP 6: Add Tax Relief (Very Important)
You may see:
Pension
Insurance
Mortgage
Add them if you have them
This will reduce your tax
STEP 7: Submit
After filling everything:
Click Submit
The system will calculate your tax automatically.
Here’s the Secret Many People Don’t Know
If your income is small…
You may pay:
Zero tax
But… if you don’t file at all…
You will pay penalty of ₦100,000 and a subsequent ₦50,000 for each of the following Month until you file your Annual Returned.
Now that deadline has been extended to: April 14, 2026
Don’t say:
“I will do it later…”
Do it now.
IN SIMPLE SUMMARY:
Get your TIN
Create your LIRS account
Calculate your annual income
Submit your return
That’s all.
The problem is not tax…
The problem is lack of understanding
Once you understand it…
Everything becomes simple.
If you still have questions…
Ask here on Fokona
That is why this platform exists..
To make money, tax, and investing simple for everyone.
What is PAYE tax in Nigeria? and Why Is It Deducted From Salary?
PAYE in Nigeria means: Pay-As-You-Earn It is the system the government uses to collect income tax directly from salary earners every month. Instead of waiting for workers to pay tax themselves at the end of the year, employers deduct the tax automatically from salaries and remit it to the tax authorRead more
PAYE in Nigeria means:
See lessPay-As-You-Earn
It is the system the government uses to collect income tax directly from salary earners every month.
Instead of waiting for workers to pay tax themselves at the end of the year, employers deduct the tax automatically from salaries and remit it to the tax authority.
So when you see PAYE on your payslip, it means:
“Income tax deducted from your salary.”
Why PAYE Exists
The government uses PAYE to fund public services such as:
Roads
Security
Schools
Hospitals
Government operations
It is compulsory for eligible salary earners under Nigerian tax law.
Why Employers Deduct It Automatically
Employers are legally required to:
Calculate employees’ taxes
Deduct the PAYE monthly
Send it to the state tax authority
So your employer acts like a tax collection agent for government.
That is why:
you usually never pay PAYE manually yourself as an employee.
PAYE Is Different From Pension and NHF
Many beginners mix them together because all appear on payslips.
But they are different.
Deduction
Purpose
PAYE
Income tax to government
Pension
Retirement savings
NHF
Housing contribution
NHIS/Health Insurance
Healthcare coverage
What Is Taxable Income?
Government usually does NOT tax your full salary directly.
First:
approved deductions and reliefs are removed.
What remains becomes:
Taxable income
PAYE is calculated on that taxable income.
Common Deductions That Reduce PAYE Legally
Some deductions legally reduce taxable income.
Examples:
Pension contribution
NHF contribution
Approved life insurance
Consolidated Relief Allowance (CRA)
Example Using ₦300,000 Salary
Suppose monthly salary is:
300,000
Step 1 — Pension Deduction
Employee pension is usually 8%.
So:
300,000×8%=24,000
Remaining income:
300,000-24,000=276,000
Step 2 — NHF Deduction
Suppose NHF deduction is:
5,000
Remaining:
276-5,000=271,000
Step 3 — Apply Tax Relief (CRA)
Nigeria gives workers a tax relief called:
Consolidated Relief Allowance (CRA)
Formula:
Max(200,000,1% Gross Income)+ 20% Gross Income
This reduces taxable income further.
Step 4 — Apply PAYE Tax Rates
Nigeria uses progressive tax rates.
That means:
higher income → higher effective tax.
Current annual PAYE bands are approximately:
Annual Taxable Income
Tax Rate
First ₦300,000
7%
Next ₦300,000
11%
Next ₦500,000
15%
Next ₦500,000
19%
Next ₦1.6 million
21%
Above that
24%
Important Point
The rates apply gradually.
It is NOT:
“Everything taxed at one percentage.”
Instead:
different portions of income are taxed at different rates.
Example Comparison
Employee Earning ₦300,000 Monthly
After deductions and reliefs:
taxable income becomes lower.
PAYE:
moderate.
Employee Earning ₦500,000 Monthly
Even after deductions:
taxable income remains larger.
PAYE:
higher.
So PAYE depends on income level and deductions.
Does Everybody Pay Same Percentage?
No.
PAYE differs because of:
salary size
pension contribution
NHF participation
insurance relief
tax reliefs
payroll structure
So two people earning similar salaries can still pay different PAYE.
What Deductions Usually Appear on Payslip?
Common items:
Item
Meaning
Gross Salary
Full salary before deductions
PAYE
Income tax
Pension
Retirement savings deduction
NHF
Housing contribution
NHIS
Health insurance
Net Salary
Final take-home pay
What Usually Does NOT Reduce PAYE
Many people misunderstand this.
Things like:
personal rent
food expenses
loan repayments
airtime
cooperative savings
usually do not directly reduce PAYE legally.
Simple Analogy
Imagine your salary is a basket of oranges.
Before government taxes it:
pension removes some oranges
NHF removes some
tax relief removes some
The oranges left are:
taxable income
Government taxes only those remaining oranges.
Why PAYE Is Important
PAYE helps government collect taxes steadily instead of waiting yearly.
For workers:
it spreads tax payment monthly,
making it easier than paying a huge amount once.
How Employers Know the Correct Amount
Most companies use payroll systems/software.
The software:
Calculates gross income
Removes deductions
Applies tax reliefs
Computes annual tax
Divides it monthly
That monthly amount becomes the PAYE deduction on your payslip.
How to Check If PAYE Looks Correct
Ask HR/payroll for:
PAYE computation sheet
taxable income breakdown
Check whether:
pension was deducted first
CRA was applied
NHF was recognized
tax bands were used correctly
Key Concepts to Remember
PAYE
Monthly salary tax deducted by employer.
Pension
Retirement savings, not government tax.
Examples of PFAs:
Stanbic IBTC Pension Managers
ARM Pension Managers
NHF
Housing contribution managed through:
fmbn.gov.ng
Taxable Income
Income left after approved deductions and reliefs.
Net Salary
What finally enters your bank account.
For official guidance:
firs.gov.ng
pencom.gov.ng
What Deductions Can Reduce PAYE Tax Legally in Nigeria?
Yes. Under Nigerian tax law, certain approved deductions and reliefs can legally reduce the amount of PAYE tax a salary earner pays. The key idea is: PAYE is not always calculated on your full salary. The government first allows specific deductions and tax reliefs. The remaining balance becomes yourRead more
Yes. Under Nigerian tax law, certain approved deductions and reliefs can legally reduce the amount of PAYE tax a salary earner pays.
See lessThe key idea is:
PAYE is not always calculated on your full salary.
The government first allows specific deductions and tax reliefs. The remaining balance becomes your taxable income.
So if two employees earn the same salary but one has more approved deductions, that person can legally pay less PAYE.
The Main Deductions That Reduce PAYE in Nigeria
The most common approved deductions are:
Deduction
Usually Reduces PAYE?
Notes
Pension contribution
Yes
Major PAYE reducer
NHF contribution
Yes
Approved deduction
Life assurance premium
Yes
If properly structured
Consolidated Relief Allowance (CRA)
Yes
Automatic major tax relief
National Health Insurance
Sometimes depends on structure
Not always direct PAYE relief
Rent expenses
No direct PAYE rent relief currently
Common misconception
1. Pension Contributions
This is the biggest and most common PAYE reduction.
Under the Pension Reform Act:
Employee minimum contribution = 8%
Employer minimum contribution = 10%
Managed through PFAs like:
Stanbic IBTC Pension Managers
ARM Pension Managers
Leadway Pensure
Example
Monthly salary:
500,000
Employee pension deduction:
500,000×8%=40,000
So PAYE is computed after removing ₦40,000 first.
New taxable base:
500,000-40,000=460,000
That reduces PAYE legally.
2. NHF (National Housing Fund)
NHF contributions can also reduce taxable income.
Managed through:
fmbn.gov.ng
Contribution is usually:
2.5% of basic salary
Example
Suppose NHF deduction:
10,000
Then taxable income reduces further.
3. Life Assurance Premium
Approved life insurance premiums may qualify for tax relief.
This generally applies when:
Policy is legitimate
Properly documented
Structured under approved tax rules
Example providers:
leadway.com
aiicoplc.com
4. Consolidated Relief Allowance (CRA)
This is one of the largest tax reliefs in Nigeria.
Most employees benefit automatically.
CRA formula:
Max(200,000, 1% Gross Income) +20% Gross Income
This significantly reduces taxable income before PAYE rates are applied.
Common Misunderstanding About Rent Relief
Many people think:
“Paying house rent reduces PAYE.”
Usually, ordinary personal rent expenses do NOT directly reduce PAYE under current Nigerian PAYE rules.
So:
Paying ₦1 million yearly rent does not automatically create tax relief.
What About Health Insurance?
This depends on:
Employer structure
Payroll arrangement
Tax treatment
Employer-provided health insurance may already be treated favorably in payroll.
But paying personal hospital bills yourself normally does not reduce PAYE directly.
How Deductions Reduce Tax
The process is:
Start with gross salary
Remove approved deductions
Apply reliefs
Tax the remaining amount
Smaller taxable income:
Smaller PAYE.
Full Simple Example
Suppose:
Monthly salary:
500,000
Pension
40,000
Remaining:
460,000
NHF
10,000
Remaining:
450,000
Life Insurance
5,000
Remaining:
445,000
Then CRA is applied before PAYE rates.
So government taxes only part of the original salary.
Can Employers Automatically Apply These Deductions?
Yes.
Most formal employers automatically handle:
Pension
CRA
NHF
PAYE calculation
Payroll software computes everything monthly.
Employees often do not see the full calculation.
Is There a Limit to Reliefs?
Yes, depending on:
Type of deduction
Tax law provisions
Payroll structure
Documentation
Examples:
Pension has regulated contribution structure
CRA follows a legal formula
Insurance relief depends on valid premiums
How to Know If You’re Paying Too Much PAYE
You may be overpaying if:
Pension is not deducted before PAYE
CRA is not applied
NHF is ignored
Payroll is outdated
Your employer misclassifies allowances
Your records are incorrect
Signs to Check on Your Payslip
Look for:
Gross salary
Pension deduction
NHF deduction
PAYE deduction
Net salary
If PAYE looks unusually high:
ask HR/payroll for the taxable income computation.
Two People Can Pay Different PAYE
Yes.
Even with equal salaries.
Example:
Item
Employee A
Employee B
Salary
₦500k
₦500k
Pension
Lower
Higher
NHF
No
Yes
Insurance
No
Yes
Taxable Income
Higher
Lower
PAYE
Higher
Lower
So approved deductions affect PAYE directly.
Important Warning
Not every deduction on your payslip reduces tax.
Examples that usually do NOT reduce PAYE:
Cooperative savings
Loan repayment
Food expenses
Transport spending
Airtime deductions
Personal investments
Only deductions recognized by tax law reduce taxable income.
Summary
Main legal PAYE reducers in Nigeria:
Pension contribution
NHF contribution
Approved life assurance
CRA
How they work:
They reduce taxable income before tax rates are applied.
Result:
More approved deductions → lower taxable income → lower PAYE.
For official guidance:
firs.gov.ng
pencom.gov.ng
fmbn.gov.ng
How Do I correctly file my personal income tax in Osun state?
Here’s a clear, step‑by‑step guide to filing your Personal Income Tax (PIT) online for Osun Internal Revenue Service so you don’t have to physically visit their office. This applies to individual residents (salaried or self‑employed) who must file before March 31 each year under the Personal IncomeRead more
Here’s a clear, step‑by‑step guide to filing your Personal Income Tax (PIT) online for Osun Internal Revenue Service so you don’t have to physically visit their office. This applies to individual residents (salaried or self‑employed) who must file before March 31 each year under the Personal Income Tax Act.
🧾 1. Confirm What You’re Filing (Who Must File)
You must file PIT returns if:
You earn income from employment (PAYE) — salary, allowances, bonuses.
You are self‑employed or earn income outside employment (Direct Assessment).
You earn from other sources (rental income, side gig, consultancy, etc.).
Every taxpayer is obligated to file annual returns by March 31st of each year for income earned in the preceding year.
🔑 2. Get Your Taxpayer Identifiers
‣ Tax Identification Number (TIN)
If you don’t have a TIN:
Visit the JTB TIN application via the OIRS website.
Complete the individual TIN application form online.
Submit and download/print your TIN — this is required for filing.
Note: Some state e‑payment portals also let you apply for a TIN during registration.
‣ Payer ID
This is a unique reference used for payment and filings.
If already registered, you can retrieve your Payer ID using your phone number or from a prior Automated Revenue Receipt (ARR)
If not registered, you must create a profile on the OIRS tax portal (next step).
🌐 3. Register / Create Your Online Tax Profile
Use the state’s electronic tax portal to register yourself if you haven’t already:
🔗 Registration portal:
➡️ https://osun.electroniccollectionsecg.com/taxes/apply
Steps:
Open the link and fill in the details (name, contact, TIN, NIN/BVN if required).
Submit and wait for confirmation; you’ll receive your Payer ID and login credentials.
📌 Save these securely — you’ll need them for payment and filing.
💸 4. Calculate and Pay Any Tax Due
Before you submit your return, determine your tax. For individuals:
Salaried workers under PAYE: your employer typically deducts your tax monthly.
Self‑employed or direct assessment: you must compute your gross income and liability yourself.
Payments can be made online through the same tax portal or affiliated e‑payment system using your Payer ID, Agency & Revenue Codes, and correct amount.
Ensure you keep the payment receipt(s) — they’ll support your filing.
📄 5. Prepare Your Annual Tax Return
‣ Download the Tax Return Template
Go to the Annual Returns / Individual Annual Tax Returns section on the OIRS site and download the Excel return template.
Template includes space for:
Osun Internal Revenue Service
PAYE income/tax (if employed)
Direct assessment (self‑employment income)
Withholding tax (WHT) credits
Relief/deductions as allowed by law
Fill the form completely and accurately.
📤 6. Submit Your Return Online
There are two ways to submit:
Method A — Online Upload (Preferred)
Log into the tax portal using your credentials.
Go to the Annual Returns / Individual Tax Returns section.
Upload your completed Excel form.
Attach evidence of payments and identification as required.
Submit and retain the acknowledgment/confirmation.
Ideally this is fully online without going to a tax office.
Method B — Email Submission
If online upload isn’t functioning:
Attach your completed Excel template.
Email to: irsosun2@gmail.com or irsosun@gmail.com (as instructed on the annual returns page).
Include your contact details and Payer ID.
📑 7. Confirm Receipt and Keep Proofs
After submission:
Ensure you receive a submission reference or acknowledgment email.
Store copies of:
Return form
Payment receipts
Email confirmation
These serve as proof of compliance if asked later.
⏱️ Deadlines & Penalties
Deadline: March 31st each year for individual PIT returns.
Filing late or non‑filing may attract penalties under State tax law — typically fines for individuals.
⚠️ Quick Tips
Always complete every section of your annual return.
Upload all payment receipts and supporting documents.
Use the correct Payer ID on all online transactions.
If unemployed or with no income in the year, you may still be required to file a nil return.
If you need the direct links for TIN application, registration portal, or Annual Returns download, let me know and I’ll list them clearly.
See lessHow Do I File Personal Income Tax (PIT) Online in Lagos State Using a Smartphone as an Unemployed Individual?
Yes — you should still file. But… 👉 you will file what is called a NIL RETURN What Is NIL Return? It simply means: 👉 “I earned NO taxable income last year” Let Me Explain With a Simple Story Mama Ngozi didn’t sell tomatoes throughout 2025. At the end of the year… She still goes to report: 👉 “I madeRead more
Yes — you should still file.
But…
👉 you will file what is called a NIL RETURN
What Is NIL Return?
It simply means:
👉 “I earned NO taxable income last year”
Let Me Explain With a Simple Story
Mama Ngozi didn’t sell tomatoes throughout 2025.
At the end of the year…
She still goes to report:
👉 “I made nothing”
That is:
✓ compliance
✓ no penalty
The Authority You’ll Use
👉 Lagos State Internal Revenue Service
Oya… Let’s Do It Step-by-Step (Using Your Phone)
STEP 1: Open the Website
On your phone browser:
👉 Go to: https://lirs.net
STEP 2: Click “eTax / Self-Service Portal”
Look for:
• eTax
• Taxpayer Login
Tap it.
STEP 3: Login
Enter:
• TIN (your tax ID)
• Payer ID
• Password
If You Don’t Have Password
Click:
👉 “Forgot Password”
Reset it.
STEP 4: Go to “File Annual Return”
After login:
Tap:
👉 “Annual Returns”
or
👉 “File Return”
STEP 5: Select Year
Choose:
👉 2025
STEP 6: Enter Income
This is the key part
Since you were unemployed:
👉 Enter:
• Income = ₦0
STEP 7: Confirm NIL Return
There is usually an option like:
✓ “No Income”
✓ “Nil Return”
Select it.
STEP 8: Submit
Tap:
👉 Submit
STEP 9: Download Proof
Very important:
• screenshot confirmation
• download acknowledgment
STEP 10: Payment
👉 No payment required
Because:
✓ no income = no tax
Important Warning
Do NOT include:
• money from family
• gifts
• random transfers
Those are:
👉 NOT taxable
Common Mistakes to Avoid
• not filing at all
• assuming “no income = no action”
• rushing submission
• not saving proof
Deadline Reminder
👉 Filing deadline: April 14, 2026
Let Me Be Honest With You
Government mainly wants:
✓ record
✓ compliance
Even if you earned nothing.
Final Truth
Filing tax when unemployed is simple:
👉 Declare zero
👉 Submit
👉 Keep proof
Let Me Leave You With This
Tax is not only about paying money.
It is also about:
✓ staying compliant
Once you understand that…
You will never be confused again.
Rose Ejituru
See lessHow Can I File My Personal Income Tax Correctly in Anambra State, Nigeria as a Contractor?
If you're in Anambra State and working in the construction industry, your tax filing is usually done through Direct Assessment (Self-Employed Personal Income Tax) — not based on total money entering your account, but based on your profit (after deducting client expenses). Let me break it down clearlRead more
If you’re in Anambra State and working in the construction industry, your tax filing is usually done through Direct Assessment (Self-Employed Personal Income Tax) — not based on total money entering your account, but based on your profit (after deducting client expenses).
See lessLet me break it down clearly 👇
1. First — Understand What You Should Be Taxed On
Since you said:
“Most money to me are for clients money to buy materials and pay labour”
You DO NOT PAY TAX on:
Client money for materials
Labour payments
Transport for project
Site expenses
You ONLY PAY TAX on:
Your profit
Your management fee
Your commission
Your contractor margin
Example:
Project Value = ₦5,000,000
Materials = ₦3,800,000
Labour = ₦800,000
Your Profit = ₦400,000
👉 You are taxed on ₦400,000 only (not ₦5M)
This is very important for construction professionals.
2. Where To File in Anambra State
You can file through Anambra State Internal Revenue Service (AIRS) which is responsible for assessing and collecting personal income tax in the state.
airs.an.gov.ng
You can file:
Option A — Online
Use the official portal:
https://tax.services.an.gov.ng
anambrastate.gov.ng
Option B — Visit Tax Office (Recommended for First Time)
You can visit any of these:
Revenue House Awka
Anambra State Board of Internal Revenue
Tax Office
They will help you file Direct Assessment.
3. Documents You Should Take
Go with:
✔ Bank statement (optional but useful)
✔ Project records (even rough notebook is fine)
✔ ID card (NIN or Voter card)
✔ Phone number
✔ Address
You don’t need CAC if you’re operating personally.
4. How They Calculate Your Tax (Simple Method)
Usually they ask:
What type of construction work?
How many projects last year?
Your estimated profit
Then they compute tax using Personal Income Tax rates.
Typical Example:
Profit ₦1,500,000 yearly
Tax may be around:
₦30,000 — ₦90,000 yearly (approx depending on reliefs)
5. Deadline (Important)
The Anambra IRS extended the 2026 filing deadline to April 30, 2026, giving taxpayers extra time to submit returns. �
Punch Newspapers +1
So you’re still within time.
6. Pro Tip (Very Important for Construction Professionals)
Start keeping simple records like:
Project
Client
Cost
Labour
Profit
House Build
Mr John
5M
800k
400k
Even simple notebook is enough.
This helps you:
Pay less tax legally
Avoid over-assessment
Get Tax Clearance Certificate (TCC)
Tax Deadline in Rivers State – How Can I File My Personal Income Tax Easily Without Mistakes?
Here’s a clear, up‑to‑date explanation of tax filing deadlines in Rivers State, Nigeria and how you can file your personal income tax return easily and correctly: 📅 Tax Filing Deadline in Rivers State Rivers State requires individuals to file their annual Personal Income Tax returns each year. WhileRead more
Here’s a clear, up‑to‑date explanation of tax filing deadlines in Rivers State, Nigeria and how you can file your personal income tax return easily and correctly:
📅 Tax Filing Deadline in Rivers State
Rivers State requires individuals to file their annual Personal Income Tax returns each year. While the state hasn’t widely published a specific universal deadline like some other states, past official notices indicate that:
Annual returns were expected to be filed by 31 January with penalties for late filing.
Extensions (in the past) have been issued for PAYE annual returns by Rivers State IRS (RIVTAMIS)
🔎 What this means for you in 2026:
Although exact dates for this year may not yet be public, most Nigerian states align with the 90‑day window after the end of the tax year (i.e., on or before 31 March), as is common under the Nigeria Tax Administration Act (NTAA) for individual filings. This alignment has been confirmed by other states like Lagos reminding taxpayers to file by 31 March.
👉 Best practice: aim to file your Rivers State annual Personal Income Tax return by 31 March 2026 for income earned in the 2025 assessment year to avoid penalties.
🧾 How to File Your Personal Income Tax Without Mistakes
Rivers State uses an online tax system called RIVTAMIS (Rivers State Tax Management Information System)
✅ Step‑by‑Step Filing
Register on the RIVTAMIS Portal
Go to http://www.rivtamis.riversbirs.gov.ng
Select “Individual” and register yourself.
Complete your information and confirm your email.
You’ll receive a RIVTIN (Tax ID) — this identifies you for Riverside tax purposes.
Gather Your Income Records
From employment: your payslips or a certificate showing PAYE deducted (your employer remits this).
From your side hustle: bank statements, sales invoices, receipts — these show business income.
Access the Filing Section
Log in to RIVTAMIS with your credentials and select Annual Personal Income Tax Return.
Complete the Tax Return
Enter your total income from all sources (salary + side hustle).
Add allowable reliefs/deductions (pension, NHF, life assurance, etc.).
The system will compute your total taxable income and tax payable.
Review & Submit
Double‑check entries for accuracy.
Upload documents if required by the portal.
Pay Any Tax Due
Pay electronically through the portal or at any of the designated banks listed on RIVTAMIS.
Download Your Tax Clearance Certificate (TCC)
After filing and payment, you can download your TCC as proof of compliance.
🧠 Tips to Avoid Mistakes
✔ Separate personal and business income records — don’t mix personal expenses with business transactions.
✔ Always save receipts and documentation for income and allowable deductions.
✔ File early — don’t wait until the last week before the deadline.
✔ Check the portal’s help guides and calculators to verify your computation before submission.
⚠️ Penalties for Late Filing
Historically, Rivers State has imposed penalties for returns filed after the due date.
Filing after the deadline can lead to monetary fines or enforcement actions by the tax authority.
📌 Summary
Requirement
Information
Likely Deadline
By 31 March 2026 (for tax year 2025)
Filing Platform
RIVTAMIS (online portal)
What to Include
Salary income + side hustle income
Required ID
RIVTIN (Taxpayer ID)
Key Action
File early to avoid penalties
If you want, I can give you a checklist with all the documents and numbers you’ll need before logging into RIVTAMIS so you don’t miss anything. Just ask!
See lessWhy is tax filing for personal income starting this year instead of 2027 under the new tax law?
Tax filing is always done AFTER the year has ended. Not during the year. Let Me Explain With a Simple Story Mama Ngozi sells tomatoes throughout 2025. From January to December: • she is making money • keeping records Government does NOT disturb her during the year. Then What Happens? At the END of tRead more
Tax filing is always done AFTER the year has ended.
Not during the year.
Let Me Explain With a Simple Story
Mama Ngozi sells tomatoes throughout 2025.
From January to December:
• she is making money
• keeping records
Government does NOT disturb her during the year.
Then What Happens?
At the END of the year…
She now comes and says:
👉 “This is what I made in 2025.”
That is when tax is calculated and filed.
Oya… Relax Let Me Explain
How Tax Timing Works (Very Important)
2025 Income
You worked, earned, and did business in:
👉 January – December 2025
When Do You File?
👉 In 2026
Why?
Because:
✓ the year must finish first
✓ total income must be known
So What Is Happening Now?
Even though a new tax law started in 2026…
👉 you are currently filing for 2025 income
Let Me Break It Down Simply
2025 = Income Year
2026 = Filing Year
What About the New Tax Law?
The new law affects:
👉 income earned from 2026 onward
Meaning:
• 2025 income → old rules
• 2026 income → new rules
Let Me Be Honest With You
Many people think:
“New law = immediate filing”
That is NOT how tax works.
Simple Analogy
Think of school.
You:
• attend classes in 2025
• write exams after finishing
You don’t write exam:
✓ in the middle of the class
Important Note for Salary Earners
If you are working:
✓ tax is already deducted monthly (PAYE)
So filing is mostly:
• confirmation
• record submission
Final Truth
You are not filing “early”
You are filing:
✓ for the previous year
Let Me Leave You With This
Whenever you hear “tax filing”
Always ask:
• “Which income year is this for?”
Because once you understand that…
The confusion disappears completely.
I HOPE THIS HELPS
Rose Ejituru
See lessTax Deadline Is March 31 – How Can I File My Personal Income Tax in Lagos Nigeria Easily?
Before we start… Lagos State Government has extended the tax filing deadline to April 14, 2026. So if you were rushing before, relax… But don’t delay again ooh, use this extra time wisely. Let Me Explain.. Imagine Mama Ngozi sells tomatoes in Lagos. One day she hears: “Tax deadline is here ooh!, It'Read more
Before we start…
Lagos State Government has extended the tax filing deadline to April 14, 2026.
So if you were rushing before, relax…
But don’t delay again ooh, use this extra time wisely.
Let Me Explain..
Imagine Mama Ngozi sells tomatoes in Lagos.
One day she hears:
She panics:
If you feel like Mama Ngozi, relax.
As your Financial Literacy Advocate, I will break it down step by step.
First… What Exactly are You Are Filing?
You are NOT filing 2026 tax.
You are declaring the money you earned from:
January – December 2025
That is what Lagos State wants.
Here’s a Step by Step Process to File your Personal Income Tax Annual Returned in Lagos
STEP 1: Get Your TIN (Tax Identification Number)
Go to Google and search:
Tax Identification Number in Nigeria
Open the Nigeria Revenue Service official portal: taxid.nrs.gov.ng
Enter your NIN
Enter your Date of Birth
Generate your TIN
This is your tax identity. Keep it safe.
STEP 2: Create Your Lagos Tax Account (LIRS)
Go to: etax.lirs.net
Create an account using:
Your BVN (recommended)
Your personal details
Then generate your:
Lagos Payer ID
Note:
Individuals = starts with N-
Companies = starts with C-
STEP 3: Login to Your Dashboard
Use:
Your newly created Payer ID
Your Password
STEP 4: File Your Annual Return
Click:
“File Annual Return”
VERY IMPORTANT (This is Where Many People Make Mistake)
If you earn:
₦100,000 per month
Do NOT enter ₦100,000.
Multiply it:
₦100,000 × 12 = ₦1,200,000
That is your annual income.
This applies to Salary Earners and Business Owners, including Freelancers or Content Creators… You are to pay from your Net Income.
STEP 5: Add Other Income (If Any)
You may see:
Rent
Business income
Dividends
If you have them, include them
If not, skip
STEP 6: Add Tax Relief (Very Important)
You may see:
Pension
Insurance
Mortgage
Add them if you have them
This will reduce your tax
STEP 7: Submit
After filling everything:
Click Submit
The system will calculate your tax automatically.
Here’s the Secret Many People Don’t Know
If your income is small…
You may pay:
Zero tax
But… if you don’t file at all…
You will pay penalty of ₦100,000 and a subsequent ₦50,000 for each of the following Month until you file your Annual Returned.
Now that deadline has been extended to: April 14, 2026
Don’t say:
Do it now.
IN SIMPLE SUMMARY:
Get your TIN
Create your LIRS account
Calculate your annual income
Submit your return
That’s all.
The problem is not tax…
The problem is lack of understanding
Once you understand it…
Everything becomes simple.
If you still have questions…
Ask here on Fokona
That is why this platform exists..
To make money, tax, and investing simple for everyone.
See less