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.
Being a student does NOT exempt you from tax. What matters is: ✓ whether you are earning income Let Me Explain With a Simple Story Mama Ngozi’s daughter is in school. But she sells: • snacks • drinks And makes small profit every week. Even though she is a student… She is still: ✓ earning income Oya…Read more
Being a student does NOT exempt you from tax.
What matters is:
✓ whether you are earning income
Let Me Explain With a Simple Story
Mama Ngozi’s daughter is in school.
But she sells:
• snacks
• drinks
And makes small profit every week.
Even though she is a student…
She is still:
✓ earning income
Oya… Relax Let Me Explain
1. Do You Really Need to Pay Tax?
👉 Yes… but only if your income is taxable
Important Truth
In Nigeria:
✓ small income may result in little or NO tax
Because of allowances.
2. Your Business Is Not Registered — Is That a Problem?
👉 No (for now)
You can still:
✓ declare your income as an individual
3. Where Should You File?
Tax is based on:
👉 where you reside (not where you school)
In Your Case:
You live in Ibadan → Oyo State
So your tax authority is:
Oyo State Internal Revenue Service
4. Step-by-Step (Very Simple)
Step 1: Estimate Your Income
Ask yourself:
• how much do I make monthly?
• how much yearly?
Step 2: Get Your TIN
TIN = Tax Identification Number
You can get it:
• online
• or at tax office
Step 3: Declare Your Income
Tell them:
✓ you are self-employed (small business)
Step 4: Fill Simple Tax Form
You will:
• input your earnings
• include basic details
Step 5: Check If You Even Owe Tax
Because of reliefs:
✓ you may pay very small amount
OR
✓ nothing at all
Let Me Be Honest With You
At your level:
Government is not chasing you for heavy tax.
But:
✓ building the habit early is powerful
Why This Matters
It helps you:
• build financial record
• avoid future issues
• become responsible early
How Do Students in Nigeria File Personal Income Tax When They Have Mixed Income From School, Gifts, and Salary?
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.
See lessHow Do Students in Nigeria File Personal Income Tax for Small-Scale Unregistered Businesses While Studying?
Being a student does NOT exempt you from tax. What matters is: ✓ whether you are earning income Let Me Explain With a Simple Story Mama Ngozi’s daughter is in school. But she sells: • snacks • drinks And makes small profit every week. Even though she is a student… She is still: ✓ earning income Oya…Read more
Being a student does NOT exempt you from tax.
What matters is:
✓ whether you are earning income
Let Me Explain With a Simple Story
Mama Ngozi’s daughter is in school.
But she sells:
• snacks
• drinks
And makes small profit every week.
Even though she is a student…
She is still:
✓ earning income
Oya… Relax Let Me Explain
1. Do You Really Need to Pay Tax?
👉 Yes… but only if your income is taxable
Important Truth
In Nigeria:
✓ small income may result in little or NO tax
Because of allowances.
2. Your Business Is Not Registered — Is That a Problem?
👉 No (for now)
You can still:
✓ declare your income as an individual
3. Where Should You File?
Tax is based on:
👉 where you reside (not where you school)
In Your Case:
You live in Ibadan → Oyo State
So your tax authority is:
Oyo State Internal Revenue Service
4. Step-by-Step (Very Simple)
Step 1: Estimate Your Income
Ask yourself:
• how much do I make monthly?
• how much yearly?
Step 2: Get Your TIN
TIN = Tax Identification Number
You can get it:
• online
• or at tax office
Step 3: Declare Your Income
Tell them:
✓ you are self-employed (small business)
Step 4: Fill Simple Tax Form
You will:
• input your earnings
• include basic details
Step 5: Check If You Even Owe Tax
Because of reliefs:
✓ you may pay very small amount
OR
✓ nothing at all
Let Me Be Honest With You
At your level:
Government is not chasing you for heavy tax.
But:
✓ building the habit early is powerful
Why This Matters
It helps you:
• build financial record
• avoid future issues
• become responsible early
Important Tip
Keep simple records:
• money in
• money out
• profit
Even if it’s in your notebook.
What Most Students Do Wrong
• ignore tax completely
• don’t track income
• panic unnecessarily
Final Truth
Tax is not about punishment.
It is about:
✓ accountability
Let Me Leave You With This
Don’t think:
“I’m just a student, it doesn’t matter.”
Think:
✓ “I am building a responsible financial life early.”
Because small habits now…
Become big advantages later.
Rose Ejituru
See less