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Oluwapelumi
Asked: 2026-03-31T03:12:33+00:00 In:

How Do Students in Nigeria File Personal Income Tax for Small-Scale Unregistered Businesses While Studying?

Good day everyone,
My question about tax filing goes thus:- I live in Ibadan with my parents but school in Ekiti state. As a student, I decided to go into a small scale business to support myself while in school. Mind you, the business isn’t registered. It’s just something I started to augment what I get from my parents. How do I file for tax revenue in this case? How do I go about it please?

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4 Answers

  1. Rose
    Contributor Profile Credentials

    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

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  2. Ochoyoda
    Intermediate

    This is a very good question — and many students running small side businesses face this same situation. Let me break it down simply and practically 👇 First — Yes, Students Can Still File Tax Under the Personal Income Tax Act, anyone earning income is expected to file tax, even: Students Small businRead more

    This is a very good question — and many students running small side businesses face this same situation. Let me break it down simply and practically 👇

    First — Yes, Students Can Still File Tax

    Under the Personal Income Tax Act, anyone earning income is expected to file tax, even:

    Students

    Small business owners

    Freelancers

    Side hustlers

    But don’t worry — it’s usually very simple for students.

    Your Situation (Let’s Break It Down)

    You mentioned:

    You live in Ibadan (with parents)

    You school in Ekiti State

    You run a small-scale unregistered business

    The most important rule is:

    👉 You file tax in the state where you RESIDE (live) — not where you school.

    So in your case, you likely file with:

    Oyo State Internal Revenue Service (since you live in Ibadan)

    Not necessarily:

    Ekiti State Internal Revenue Service

    What If My Business Is Not Registered?

    This is very common — and it’s okay.

    You can still file tax even if:

    ✅ Business not registered

    ✅ No CAC documents

    ✅ Small income

    ✅ Irregular earnings

    Tax filing is about income, not business registration.

    Step-by-Step: How You Can File (Simple Way)

    Step 1 — Get Tax ID

    Go to:

    Oyo State Internal Revenue Service

    Ask for:

    Tax Identification Number (TIN)

    You’ll need:

    Name

    Phone number

    Address

    Occupation (Student + small business)

    Step 2 — Declare Your Income

    Tell them:

    You’re a student

    You run small business

    Your income is small

    They will guide you to:

    File Nil return (if income very small)

    OR

    File minimal tax (usually very low)

    Important (Good News for Students)

    If your income is small, you may:

    ✅ Pay very little tax

    OR

    ✅ Pay nothing (Nil return)

    This is normal.

    Example

    If you earn:

    ₦20,000 monthly

    ₦30,000 sometimes

    You may:

    👉 File Nil return

    or

    👉 Pay very small tax

    Why You Should Still File

    Even as a student, filing helps you:

    ✅ Build financial record

    ✅ Avoid future penalty

    ✅ Helps for loans

    ✅ Helps for visa applications

    ✅ Helps for business growth later

    Who Created This Rule?

    This is guided by:

    Joint Tax Board

    State tax authorities

    Nigerian tax law

    My Practical Advice For You

    Since you’re a student with small business:

    👉 Start simple

    👉 Get Tax ID

    👉 File basic return

    👉 Don’t overcomplicate it

    You’re already doing something impressive — running a business as a student. That kind of discipline aligns with your interest in saving and investing early (which you’ve been asking about recently). Filing tax early also builds financial credibility for your future investments.

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