A Nigerian man has taken to social media to share his firsthand account of making a financial transaction under the new tax laws that took effect in 2026. His experience contradicts widespread fears and reports of immediate deductions circulating online.
First-Hand Experience Debunks Tax Fears
The X user, identified as @QuantUMYTE, revealed that on January 1, 2026, he transferred the sum of Twenty Thousand Naira (N20,000) to another person. Contrary to the alarming narratives online, he confirmed that no tax was deducted from the transaction amount.
"Just made my first transaction in 2026. ₦20k sent, no 20% tax, no ₦4k charge," he tweeted. He used the opportunity to caution the public against the rampant spread of unverified information, adding, "A lot of misinformation online always verify."
Clarifying the New Tax Framework
The man's post sparked a wave of reactions and clarifications from other netizens, helping to demystify the actual workings of the tax policy. A key point of consensus emerged: the tax is not applied per transaction in the manner many had feared.
Several users explained that individuals have an annual tax-free threshold of N800,000. Taxation only applies to cumulative income that exceeds this threshold by the end of the assessment year, and it is progressive, not a flat rate. The tax liability is typically determined during annual filing, not through instant deductions on every bank transfer.
One user, @GIbadin, however, raised a separate concern about a reported N50 charge on transfers of N10,000 and above, levied on both sender and receiver, describing it as a cyclical charge that differs from the income tax.
Contrasting Experiences and Public Confusion
The discussion highlights a significant gap in public understanding of the new fiscal policies. While @QuantUMYTE's experience was positive, other reports have caused anxiety. For instance, Legit.ng previously covered a case where a lady lamented being charged a 7.5% Value Added Tax (VAT) on a purchase worth N6.5 million.
Furthermore, separate posts have shown individuals complaining about deductions labeled as "tax" on their transaction alerts, adding to the confusion. This mix of experiences—involving potential VAT, other transaction charges, and the new income tax law—has created a complex information landscape that many Nigerians are struggling to navigate.
The core advice from the discourse is clear: citizens are urged to seek accurate information from official sources or financial advisors to understand their specific tax obligations, rather than relying solely on social media claims. The incident underscores the critical need for effective public communication from relevant government agencies to prevent misinformation.
