5 Practical Tax Tips to Help You Save More and Stress Less (Nigeria Edition, with 2026 Reform Included)
Tax season in Nigeria can feel overwhelming — filled with paperwork, e‑filing issues, and evolving regulations. With the right approach, you can turn tax planning into a tool for savings and peace of mind instead of a yearly scramble. Whether you’re a salaried employee, freelancer, or small business owner, these five practical tax tips—updated for the next‑gen tax law regime—can help you stay compliant, save money and reduce stress.
1. Maximize Allowable Deductions and Reliefs
Under current rules and the upcoming reform, you still want to make full use of what is permissible.
For Individuals (PAYE, Self‑Employed):
- Consolidated Relief Allowance (CRA): higher of ₦200,000 or 1% of gross income plus 20% of gross income.
- Pension, NHF, NHIS, life assurance premiums deductible.
- From 2026, individuals earning ₦800,000 or less per annum will be exempt from personal income tax.
- Tax‑exemption threshold for compensation for loss of employment or injury increases from ₦10 million to ₦50 million.
For Businesses:
- Expenses wholly, reasonably, exclusively, and necessarily incurred remain deductible under FIRS regime.
- Small companies (turnover ≤ ₦100 million, assets ≤ ₦250 million) may be exempt from CIT, CGT, and Development Levy.
Pro Tip: Maintain supporting documentation (receipts, invoices, bank statements). With the reform there will be stronger enforcement and digital tax administration.
2. Contribute to Approved Pension and Retirement Schemes
Contributions to approved pension or retirement savings schemes remain tax‑deductible. With the new laws coming into effect in 2026, reducing taxable income through voluntary or mandatory pension savings becomes even more important. Self‑employed individuals should consider the Micro Pension Plan.
Pro Tip: Set up automatic monthly deposits into your pension fund to reduce taxable income and build future security.
3. Track Business, Freelance and Side‑Gig Expenses
Income from consulting, side hustles, or freelancing must be declared, but related expenses can be deducted. Examples include internet, marketing, travel, rent, and professional fees.
Under the 2026 reform:
- A unified tax code will apply across federal, state, and local authorities.
- Small business turnover threshold for tax relief is raised to ₦100 million.
Pro Tip: Open a separate business bank account and avoid mixing personal and business expenses.
4. Plan for Capital Gains and Withholding Taxes
Under the new regime, companies will pay 30% on capital gains, while individuals’ gains will be taxed at progressive rates. Profits from digital and virtual assets are now taxable.
Pro Tip: Before selling investments or assets, factor in timing and tax impact. Keep withholding tax credit notes safely — with the unified regime, records become even more important.
5. Stay Organized and File Returns Early
The new tax laws take effect from January 1, 2026, creating the Nigeria Revenue Service (NRS) to replace FIRS, introducing unified tax administration across government levels.
Individuals earning ≤ ₦800,000 are exempt but must still register and file returns. Businesses should plan to maintain eligibility for small business reliefs.
Pro Tip: Use cloud storage for record‑keeping and schedule quarterly reviews to stay compliant under the digital filing regime.
In Summary
With the 2026 tax reform in Nigeria, tax planning becomes about making informed decisions year‑round. By maximizing deductions, contributing to pensions, tracking expenses, managing capital gains, and staying organized, you can reduce your tax burden and remain fully compliant.
Need help keeping your records clean and audit‑ready? Outliers Professionals Ltd offers bookkeeping, compliance, and advisory services tailored for SMEs, freelancers, and side‑hustle operators.
📞 0805 197 6005
💬 WhatsApp:2348061537494