First Time Filing Taxes in Nigeria: A Beginner’s Complete Walkthrough

Never filed taxes in Nigeria before? This step-by-step guide walks you through the entire process — from getting your Tax ID to submitting your return under the NTA 2025.

You have been earning income — from a job, a side business, freelance work, or investments — and you have never filed a tax return. You are not alone. Millions of Nigerians earn taxable income without filing, either because they believe PAYE deducted by their employer covers everything, because they do not know they are required to file, or because the process seems intimidating and nobody has walked them through it.

The Nigeria Tax Administration Act 2025 now makes individual filing mandatory for every person who earns income, regardless of whether an employer already deducts PAYE. This guide is written for the person who has never filed before — no jargon, no assumptions, just the complete process from start to finish so you can file your first Nigerian tax return correctly and on time.

Do You Actually Need to File?

The short answer is yes. Under the NTAA 2025, every individual who earns income that is taxable in Nigeria is required to file an annual tax return with their State Internal Revenue Service. This includes:

• Salaried employees — even if your employer deducts PAYE from your salary every month. The employer files their own return (Form H1) by 31 January. You must file your own individual return by 31 March. These are separate obligations.
• Self-employed individuals — sole proprietors, freelancers, contractors, traders, artisans, professionals in private practice.
• People with multiple income sources — a salary plus freelance income, a job plus rental income, employment plus investment income.
• People who earn above the minimum wage — the NTA 2025 exempts earners at or below the national minimum wage from PAYE and minimum tax. If you earn above the minimum wage, filing is required.

The only people clearly outside the filing requirement are those who earn at or below the national minimum wage with no other income sources and no tax liability. Everyone else should file.

“But My Employer Already Deducts PAYE — Why Do I Need to File?”

This is the question most first-time filers ask. Your employer deducts PAYE on your behalf and remits it to the State IRS. But the employer’s return (Form H1) is the employer’s filing — it reports what the company deducted. Your individual return is your filing — it reports your total income from all sources, confirms the PAYE deducted, claims any additional deductions your employer may not have applied, and declares any other income (freelance work, rental income, investments) that your employer knows nothing about.

The two returns must reconcile. If your employer’s Form H1 shows ₦500,000 in PAYE deducted for you, your individual return should reflect the same ₦500,000. Discrepancies trigger queries from the State IRS.

Filing also has practical benefits. A filed return is required to obtain a Tax Clearance Certificate (TCC), which you need for government contracts, bank loans, visa applications, property registration, vehicle registration, and many professional licences. Without a TCC — which requires evidence of filing for the three preceding years — certain transactions simply cannot proceed.

Step 1: Get Your Tax Identification Number

Every tax return requires a Tax Identification Number (TIN). Under the NTA 2025, your 13-digit National Identification Number (NIN) now serves as your individual Tax ID. You do not apply for a separate TIN — if you have a NIN, you already have a Tax ID.

How to Verify Your Tax ID

1. Go to taxid.nrs.gov.ng
2. Enter your NIN
3. The portal will display your Tax ID status and basic details

If your Tax ID is active and your details are correct, you are ready to proceed. If your details are incorrect (wrong name spelling, wrong address) or your Tax ID appears inactive, you will need to visit your State IRS office with your NIN slip, a valid government-issued ID (international passport, driver’s licence, or voter’s card), and proof of address to resolve the issue.

What If You Do Not Have a NIN?

You need one — not just for tax but for banking, SIM registration, and other government services. Enrol at any National Identity Management Commission (NIMC) office or approved enrolment centre. Once you receive your NIN, your Tax ID is automatically linked through the NRS system. The process can take several weeks, so start early if you have not yet enrolled.

Step 2: Determine Which State IRS You File With

Individuals file their tax returns with the State Internal Revenue Service of the state where they reside — not where they work and not where their employer is located.

• If you live in Lagos, you file with the Lagos State Internal Revenue Service (LIRS)
• If you live in Abuja (FCT), you file with the FCT Internal Revenue Service (FCT-IRS)
• If you live in Ogun State but work in Lagos, you file with the Ogun State Internal Revenue Service

Each State IRS has its own portal, forms, and processes. Some are fully digital; others still require physical visits. Before you begin, check whether your State IRS has an online filing portal:

• Lagos (LIRS): etax.lirs.net
• FCT-IRS: jtb.gov.ng or the FCT-IRS office
• Other states: Search “[your state] internal revenue service portal” or call the State IRS office directly for their filing process

If your State IRS supports online filing, create an account using your Tax ID. If it requires physical filing, locate the nearest office and confirm what documents to bring.

Step 3: Gather Your Documents

What you need depends on how you earn your income. Collect these before you start the return — do not try to file and gather documents at the same time.

If You Are Employed

• Annual tax deduction summary from your employer. This shows your total gross pay, PAYE deducted, pension contributed, and other statutory deductions for 2026. Request it from HR or payroll. If it is not available, use your December payslip showing year-to-date totals.
• Pension statement. An annual statement from your PFA (ARM Pension, Stanbic IBTC, Leadway Pensure, or whichever PFA holds your RSA) showing total contributions during 2026.
• Rent documentation. Tenancy agreement, rent receipts, and bank transfer evidence — for claiming rent relief (20% of rent paid, max ₦500,000).
• Bank statements. For all accounts that received salary payments during 2026.
• NHF/NHIS evidence. If you contribute to the National Housing Fund or NHIS, obtain statements showing total contributions.
• Life insurance receipts. If you hold a qualifying life insurance policy, obtain the premium payment confirmation.

If You Are Self-Employed

Everything above (except the employer summary), plus:

• Income records. Invoices, contracts, platform payout reports, and payment confirmations for all business income during 2026.
• Expense receipts. Receipts and invoices for every business expense — rent, internet, phone, software, transport, equipment, professional fees, subcontractors.
• Asset register. If you purchased business assets (laptop, vehicle, camera, furniture), their costs and dates for capital allowance claims.
• WHT credit notes. If clients deducted withholding tax from your invoices, collect every credit note — each one reduces your tax bill.

If You Have Investment Income

• Dividend and interest statements. From your broker, CSCS, or bank — showing gross amounts and WHT deducted. For dividends and interest, the 10% WHT is usually the final tax, so you may not need to report these further. Keep the statements as evidence.
• Capital gains records. If you sold shares, property, or cryptocurrency at a profit, you need purchase and sale records plus incidental cost receipts to compute CGT at 10%.

Step 4: Compute Your Tax

This is where the numbers come together. The computation follows the same structure regardless of how you earn your income — you are arriving at a single figure called chargeable income and applying the NTA 2025 tax bands to it.

For Employees: The Computation Is Mostly Done for You

If you are a salaried employee with a single employer and no other income, your employer has already computed your PAYE for the year. Your annual return essentially confirms those figures. Here is what your computation looks like:

Then apply the NTA 2025 tax bands to your chargeable income:

The total tax computed should match (or closely match) the total PAYE deducted by your employer during the year. If it does, your return simply confirms the figures and no additional payment is needed. If the figures differ — because you claimed a deduction your employer did not apply, or because you have additional income your employer did not know about — you either owe additional tax or are entitled to a refund.

Use our PAYE Calculator to verify the computation before filing.

For the Self-Employed: You Do the Full Computation

Apply the same tax bands above. Then subtract any WHT credits (from credit notes collected during the year). The result is your tax payable.

Worked Example: Employee Filing for the First Time

Chidinma works as a marketing executive in Lagos. She earns ₦5,400,000 gross per year. She has never filed a tax return — her employer deducts PAYE monthly, and she assumed that was the end of it. Under the NTAA 2025, she now needs to file her own individual return. Here is her computation:

Tax calculation:

Chidinma’s employer has deducted ₦656,160 in PAYE during the year (₦54,680 per month). Her individual return confirms this figure. She does not owe additional tax and does not need to make a payment. She simply submits the return.

But what if Chidinma had not submitted rent documentation to her employer? Her employer would have computed PAYE without the ₦300,000 rent relief — resulting in higher PAYE deductions throughout the year. By claiming the rent relief on her individual return, she could identify the overpayment and request a refund or credit.

Worked Example: Self-Employed First-Time Filer

Obinna is a freelance web developer in Abuja. He earned ₦8,500,000 from client projects in 2026. He has never filed a tax return and has no employer to deduct PAYE. Here is his computation:

Tax calculation:

Obinna’s clients deducted 5% WHT on his invoices during the year, totalling ₦425,000 (5% × ₦8,500,000). He collected WHT credit notes from each client. His remaining tax payable: ₦628,800 − ₦425,000 = ₦203,800.

Without claiming business expenses (₦1,800,000), capital allowances (₦300,000), pension (₦1,340,000), rent relief (₦400,000), and WHT credits (₦425,000), Obinna’s tax on ₦8,500,000 gross income would be ₦1,316,000. He saved ₦1,112,200 — legally — by keeping records and claiming what the NTA 2025 entitles him to.

Step 5: Complete the Tax Return Form

The specific form and process varies by State IRS, but the information required is broadly the same across all states. Your return will ask for:

• Personal information: Full name, Tax ID (NIN), residential address, state of residence, contact details, occupation
• Income details: Gross income from employment (salary, allowances, bonuses, benefits in kind), gross income from business/profession, investment income (dividends, interest, capital gains), any other income
• Deductions claimed: Pension contributions, rent relief (with supporting evidence), NHF, NHIS, life insurance, business expenses (for self-employed), capital allowances (for self-employed)
• Tax computation: Chargeable income, tax calculated using the NTA 2025 bands, PAYE already deducted (for employees), WHT credits (for self-employed and investors)
• Tax payable or refund due: The difference between your computed tax and amounts already paid through PAYE or WHT
• Declaration and signature: Confirming that the information is accurate and complete

Online Filing

If your State IRS supports online filing (Lagos LIRS uses etax.lirs.net; other states have their own portals), create an account, log in, and follow the guided form. Online portals typically pre-populate some fields if your employer has already filed their return. You complete the remaining fields, upload supporting documents where required, and submit electronically.

Physical Filing

If your State IRS requires or accepts physical filing, visit the office with:

• A completed return form (some offices provide blank forms at the counter; others have them available for download)
• All supporting documents (employer summary, pension statement, rent receipts, expense records, WHT credit notes)
• Your Tax ID (NIN)
• A valid government-issued ID

Submit the form and documents. Obtain a filing receipt or acknowledgement — this is your proof of filing. Keep it with your tax records.

Filing Through a Tax Agent

Some states require individuals to file through an accredited tax agent — a professional (usually a chartered accountant or tax practitioner) authorised by the State IRS to submit returns on behalf of taxpayers. Even where it is not required, using a tax agent for your first filing can be worthwhile. They handle the form, ensure the computation is correct, and submit on your behalf. Fees vary but are typically modest for straightforward individual returns.

Find an accredited professional through our Tax Professional Directory.

Step 6: Pay Any Tax Owed

If your return shows additional tax payable — because you have income your employer did not tax, because you are self-employed and owe tax after WHT credits, or because your PAYE was under-deducted — you must pay the balance.

How to Pay

Most State IRS offices accept payment through:

• Their online portal (linked to Remita, Interswitch, or a direct bank payment gateway)
• Designated bank branches (with the appropriate tax payment form referencing your Tax ID and assessment)
• Remita or other approved payment platforms using a generated payment reference

Ensure the payment references your Tax ID, the correct tax year (2026), and the correct State IRS. Keep the payment receipt — it is evidence that your liability has been settled and is required for your Tax Clearance Certificate.

If You Owe Nothing

If your employer deducted the correct PAYE and you have no additional income, your return is a confirmation filing. You submit the return, pay nothing further, and receive a filing acknowledgement. Many first-time employee filers fall into this category — the process is simply completing and submitting the form.

If You Are Owed a Refund

If your PAYE was over-deducted (for example, because your employer did not apply rent relief that you are now claiming on your return), you may be entitled to a refund. In practice, refunds from State IRS offices can be slow. Many taxpayers choose to apply the overpayment as a credit against the following year’s liability rather than waiting for a cash refund. Discuss the options with your State IRS or tax agent.

Step 7: Obtain Your Tax Clearance Certificate

After filing and paying any tax owed, you can apply for a Tax Clearance Certificate (TCC). The TCC confirms that you have filed returns and paid tax for the three preceding years. It is required for:

• Government contract bids and approvals
• Bank loan applications (some banks require it)
• Visa applications (some embassies request it)
• Property registration (particularly in Lagos and other states)
• Vehicle registration and import duty clearance
• Professional licence renewals
• Opening certain types of bank accounts

The corporate TCC is issued by the NRS through the e-TCC portal at tcc.firs.gov.ng. Individual TCCs are issued by the State IRS — application processes vary by state. Some issue TCCs automatically after filing; others require a separate application. Check with your State IRS.

If this is your first year filing, you will not immediately qualify for a TCC covering three years. However, starting now means that by the third year, you will have a clean three-year filing history. Some states may issue a TCC covering just the years you have filed, especially if you can demonstrate that you were not previously required to file (for instance, you were a student or below the income threshold).

What If You Should Have Been Filing in Previous Years?

If you have been earning income for several years without filing, the honest reality is that you have an outstanding obligation. The question is how to address it without inviting penalties that compound the problem.

Voluntary Disclosure

The best approach is to file voluntarily — before the tax authority comes to you. Voluntary compliance is generally treated more leniently than forced compliance after an audit or enforcement action. Many State IRS offices have programmes or informal practices that reduce penalties for taxpayers who come forward on their own.

How Many Years Back?

The NTAA 2025 requires records for a minimum of six years, and the tax authority can assess you for unfiled years within the statute of limitations. In practice, the State IRS is most likely to focus on the three most recent years — because the TCC covers three years and because older records are harder for both you and the tax authority to reconstruct.

Practical Steps

1. Gather whatever records you can for the past three years (2024, 2025, 2026)
2. Compute your income and tax for each year as accurately as possible
3. Consider engaging a tax agent who can negotiate with the State IRS on your behalf — they understand the local practice and can often arrange a manageable resolution
4. File all outstanding returns and pay any tax owed
5. Going forward, file every year by 31 March

The penalty for not having filed is real (₦100,000 first month plus ₦50,000 per month), but it is almost always less painful to deal with it proactively than to wait for the State IRS to find you — at which point the penalties are applied in full and enforcement options are on the table.

Common First-Timer Mistakes

• Thinking PAYE means you do not need to file. PAYE deducted by your employer is the employer’s obligation. Your individual return is your own separate obligation under the NTAA 2025. Both must happen.
• Filing with the wrong State IRS. You file with the State IRS of the state where you reside, not where you work. If you live in Ogun but work in Lagos, your return goes to the Ogun State Internal Revenue Service.
• Not claiming rent relief. This is free money — up to ₦500,000 off your chargeable income — that most first-time filers leave on the table because they did not know it existed or did not collect the documentation.
• Not claiming business expenses (self-employed). First-time self-employed filers frequently report gross income without deducting any business expenses, resulting in a tax bill two or three times higher than it needs to be. Every legitimate business expense reduces your tax.
• Not collecting WHT credit notes. If clients deducted WHT from your payments, that tax has already been paid on your behalf. Claiming it as a credit reduces — sometimes eliminates — the tax you owe on filing. Without the credit note, you cannot claim it.
• Using the old CRA deduction. The Consolidated Relief Allowance (20% of gross plus ₦200,000) was abolished by the NTA 2025. If an older tax guide or a friend told you to claim CRA, ignore that advice — it no longer applies from the 2026 tax year.
• Using the old PITA tax bands. The old 7%/11%/15%/19%/21%/24% structure expired on 31 December 2025. All 2026 computations use the NTA 2025 bands: 0%/15%/18%/21%/23%/25%.
• Waiting until March. The 31 March deadline feels distant in January. Then February disappears. Then you spend the last week of March scrambling for documents that landlords, PFAs, and former employers cannot produce overnight. Start in January. File by mid-March. Give yourself a buffer.

A Simple Filing Calendar for First-Time Filers

Final Thoughts

Filing your first Nigerian tax return sounds more complicated than it is. For most salaried employees, it is a confirmation exercise — your employer has already deducted the right PAYE, and your return simply puts it on record. For the self-employed, it is a computation exercise that rewards you for keeping receipts — every documented expense reduces your tax. For both, it is a 31 March deadline that requires January preparation.

The NTA 2025 and NTAA 2025 have made individual filing mandatory. That is not changing. The earlier you start, the easier it becomes — not because the law gets simpler, but because the habit of collecting documents, computing tax, and filing on time becomes second nature after the first year. Year one is the hard one. After that, you are just updating last year’s numbers.

Verify your Tax ID at taxid.nrs.gov.ng. Run your numbers through our PAYE Calculator. Ask a specific question to the AI Tax Assistant. If you want a professional to handle your first filing, find one through the Tax Professional Directory. And for the NRS Self-Service Portal, visit selfservice.nrs.gov.ng.

FAQs About Filing Taxes for the First Time in Nigeria

Do I need to file a tax return if my employer already deducts PAYE?

Yes. Under the NTAA 2025, every individual who earns taxable income must file their own annual return by 31 March — even if an employer deducts PAYE monthly. The employer’s return (Form H1) and your individual return are separate obligations. Your return confirms the PAYE figures and declares any additional income or deductions.

Is there a fee to file a tax return?

No. Filing a tax return with your State IRS is free. If you engage a tax agent to prepare and file on your behalf, they will charge a professional fee — but the filing itself costs nothing.

What happens if I file late?

Late filing attracts a penalty of ₦100,000 for the first month and ₦50,000 for each subsequent month of default under NTAA Section 101. This applies whether you owe tax or not — the penalty is for not filing, not for not paying. File on time even if you believe your tax has been fully deducted through PAYE.

What if I earn below ₦800,000 — do I still file?

If your chargeable income (after deductions) is ₦800,000 or below, your tax liability is zero under the NTA 2025. You should still file a return showing zero tax payable — filing establishes your compliance record and is required for a Tax Clearance Certificate. Earners at or below the national minimum wage are exempt from PAYE and minimum tax.

Can I file my return myself or do I need an accountant?

You can file yourself. The process — gathering documents, computing your tax, and completing the form — does not require professional qualifications. However, if your tax situation is complex (multiple income sources, business assets, foreign income) or if you are filing for the first time and want guidance, engaging an accredited tax agent is a worthwhile investment. Some State IRS offices require filing through an accredited agent.

What if I have been earning for years without filing?

The best approach is voluntary disclosure — file outstanding returns before the tax authority identifies you. Gather records for the past three years, compute the tax owed, and consider engaging a tax agent to negotiate with your State IRS. Voluntary compliance is generally treated more leniently than forced compliance after enforcement action. Penalties apply for unfiled years, but addressing the problem proactively is always better than waiting.

How do I get a Tax Clearance Certificate after filing?

After filing your return and paying any tax owed, apply for a TCC from your State IRS. The TCC covers the three preceding years and is required for government contracts, bank loans, visa applications, and property registration. If this is your first year filing, you may receive a TCC covering only the years filed. Individual TCC processes vary by state — check with your State IRS office or portal.