Taiwo Oyedele’s Blueprint: 5 Ways Your Money Changes Today (January 19 Implementation)

As the Chairman of the Tax Reform Committee, it is my responsibility to ensure every Nigerian understands the logic and the logistics of the 2026 Tax Reform Act. Today, January 19, marks the formal activation of several key provisions.

I have seen the questions across social media and the +2,900% search surge this morning. Let us move past the rumors and focus on the five legislative realities impacting your finances today.

1. The 7.5% VAT on Banking Service Fees

This is not a new tax on your transfer principal. It is the standardized enforcement of the Value Added Tax on the fees charged by financial institutions. If your bank charges ₦100 for a transfer, the additional ₦7.5 is the VAT on that service fee. Your capital remains untouched.

2. Zero Income Tax for Low-Income Earners

A central pillar of this reform is equity. As of today, any individual earning less than ₦800,000 per annum is officially tax exempt. This is the ₦0 PAYE mandate. If your employer continues to deduct tax from this bracket, they are in violation of the new directive.

3. Harmonized USSD and Mobile Money Fees

The "Convenience Fee" for USSD banking (*737#, *966#, etc.) has been streamlined. The 7.5% VAT now applies uniformly across all digital transaction endpoints, ensuring a predictable cost structure for mobile money users nationwide.

4. Full NRS Portal Integration

The legacy FIRS systems have successfully migrated to the Nigeria Revenue Service (NRS). Taxpayers must now use the unified portal for all TIN verifications and compliance certificates. This digital shift eliminates the need for manual, physical filing for individual taxpayers.

5. The Implementation Checklist

To ensure you are correctly positioned under the new law, I recommend the following:

Validate your TIN: Accessibility to the ₦800k exemption requires a verified status on the NRS portal.
Audit Payroll Compliance: Employees should verify that their January pay reflects the new tax brackets.
Monitor Transaction receipts: Transparency in banking fees is now mandatory; ensure your digital receipts show the VAT breakdown clearly.

Chairman's Note:

The 2026 Reform is designed to shift the burden from production to consumption. By checking your TIN and understanding your brackets, you are participating in a more transparent and accountable Nigeria. 🇳🇬