A renowned tax expert, Prince Ayodele Samuel Adebolu, has clarified misconceptions surrounding the new tax law and outlined practical strategies for effective compliance by microfinance banks, saying the reform is designed to promote fairness, efficiency, and accountability in the tax system.
Adebolu spoke on Tuesday during an enlightenment workshop organised by the National Association of Microfinance Banks of Nigeria (NAMB), Ekiti State Chapter, held at Onward Hotel, Ilupeju-Ekiti.
He explained that contrary to widespread fears, the new tax law is structured to mainly target wealthy individuals and high-income earners, while providing relative relief for low-income earners. According to him, the law also introduces tax unification to eliminate duplication and multiple taxation across agencies.
The tax expert disclosed that chief executives of banks are required to properly register themselves and ensure that their customers are also registered in the tax system. He added that employers must remit Pay-As-You-Earn (PAYE) taxes for their staff on or before January 31, 2026, while employees equally have personal tax obligations under the law that must be paid on or before 30th March, 2026.
On tax planning and compliance for microfinance banks, Adebolu stressed the importance of accurate financial management, proper record-keeping of income, expenses, and allowable deductions, as well as strict adherence to Value Added Tax (VAT) regulations. He also highlighted transfer pricing rules and noted that capital gains tax (CGT) on asset disposal is pegged at 30 per cent.
Speaking on statutory obligations, he said microfinance banks must obtain Tax Identification Numbers (TIN) for both the institutions and their customers, while transactions exceeding ₦25 million must be reported quarterly to tax authorities. He further explained that banks are required to deduct and remit Withholding Tax (WHT) on interest, dividends, and fees, in addition to full compliance with VAT requirements, emphasizing that proper documentation and correct classification of transactions are critical.
Adebolu urged tax professionals and financial institutions to move away from misconceptions about the new tax regime and instead focus on compliance, planning, and transparency to enhance service delivery, particularly at the grassroots level.
In his remarks, the Chairman of National Association of Microfinance Bank, Ekiti State Chapter, Mr Gbenga Adegun, Managing Director , Omiye Microfinance applauded the resource person for addressing the fears and concerns of microfinance banks. He said the workshop had equipped members with the needed knowledge to operate confidently under the new tax law.
Adegun added that with the insights gained, microfinance banks in the state are now better positioned to support grassroots development by effectively serving small-scale business owners and other business personalities across Ekiti State.