The federal government has directed banks and financial institutions to begin submitting monthly reports of transactions exceeding N25 million for individuals and N100 million for corporate entities to the tax authorities.

This directive is part of new provisions under the Nigerian Tax Act, which also mandates financial institutions to file quarterly reports with the Federal Inland Revenue Service (FIRS).

Notably, the agency is set to be renamed the Nigeria Revenue Service (NRS) starting January 2026, when the revised tax framework becomes effective.

According to the Act, any person or organisation responsible for deducting and remitting taxes must also provide monthly reports to the relevant tax authority, based on guidelines issued for tax deductions.

The Act read in part: “…and existing customers in the case of (i) an individual, all transactions where the cumulative transactions in a month amount to N25,000,000 or more, or (ii) a body corporate, all transactions where the cumulative transactions in a month amount to N100,000,000 or more.”

The legislation further requires banks, insurance firms, stockbrokers, and similar financial entities to prepare and submit quarterly returns, either on request or voluntarily, listing the names and addresses of new and existing clients whose monthly transactions meet or exceed the specified thresholds.

Previously, banks were required to report deposits of N5 million and above, a policy aimed at preventing illicit financial flows. Analysts believe the new reporting requirements are part of broader efforts to strengthen anti-money laundering measures in Nigeria's financial system.

In 2023, the Financial Action Task Force (FATF) placed Nigeria on its grey list due to shortcomings in combating money laundering and terrorist financing.

Since then, the government has taken steps to address these issues.

In November 2024, Hafsat Bakari, CEO of the Nigerian Financial Intelligence Unit (NFIU), announced that Nigeria had made progress on five key FATF recommendations, signalling efforts to improve its standing and exit the grey list.