27.10.2026
Nigeria Revenue Service (NRS) has reaffirmed its commitment to strengthening taxpayer education to promote voluntary compliance, address public concerns and build confidence in the country’s tax system.
The NRS State Administrator for Jigawa, Kano and Katsina states, Ismail Abdullahi, said this during a taxpayer sensitisation and enlightenment programme in Kano.
He said the implementation of the new tax laws raised concerns among taxpayers over possible automatic bank deductions, the treatment of loans and other bank transfers, the impact of value added tax (VAT) on small businesses and revenue allocation to states.
Mr Abdullahi said taxpayers needed clear and practical explanations of the reforms to understand their obligations, rights and available tax reliefs.
According to him, improved understanding of the tax laws will reduce misconceptions, prevent compliance errors and enable individuals and businesses to make informed decisions.
He stated, “The standard VAT rate remains 7.5 per cent and bank credits should not automatically be regarded as taxable income without considering the nature of the transactions.”
Mr Abdullahi added that traders who receive loans, such as N500,000, should retain supporting documents to establish that the money was borrowed and not earned as sales revenue or profit.
Mr Abdullahi urged taxpayers to report difficulties in understanding tax requirements, interpreting regulations and using digital platforms.
According to him, feedback from taxpayers will help the service identify gaps in service delivery and guide improvements in tax administration.
“Effective tax administration requires cooperation between revenue authorities and taxpayers,” he said. NAN