By Abdulahmeed Abdulrozaq Bilal | Fact Frontier.
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With the March 31 tax filing deadline fast approaching, millions of Nigerians are scrambling to understand their obligations under the new tax laws. If you earn ₦800,000 or less annually, you may owe no tax — but you are still required to file what is known as a “nil return” to confirm your exempt status. Failure to do so could cost you dearly.
What Is a Nil Return and Who Must File?
A nil return is a formal declaration to the tax authorities that you had no taxable income during the relevant period. Under the Nigeria Tax Administration Act 2025, every individual with income must file a tax return — even if no tax is ultimately payable. This includes salary earners under PAYE, freelancers, small traders, artisans, business owners, and landlords earning rental income. Those earning ₦800,000 or less annually are exempt from paying personal income tax but must still file a nil return to confirm that status. “Filing of returns is compulsory, whether or not income was earned in the relevant period,” the Sokoto Internal Revenue Service has stated.
How to File a Nil Return
Follow these simple steps to file your nil return before the deadline:
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1. Obtain Your TIN:
Get a Tax Identification Number (TIN) through your State Internal Revenue Service portal. Your NIN may also serve as your primary Tax ID.
2. Gather Your Records:
Collect any relevant documents — bank statements, business records, or proof of income — though for a nil return, you are declaring no taxable income.
3. File Online:
Visit your state’s e-tax portal. Lagos residents can file through the LIRS portal at lirs.gov.ng, while Abuja residents use the FCTA-IRS portal. A full list of all State Internal Revenue Service websites is available on official government platforms.
4. Submit and Save Confirmation:
Select the “File Nil Return” option, complete the form, and submit. Always save the acknowledgement slip as proof of filing.
Consequences of Failure to File
The penalties for non-compliance are severe. Missing the March 31 deadline attracts a ₦100,000 fine for the first month, followed by ₦50,000 for every additional month of delay. Beyond fines, persistent failure can trigger enforcement measures, including automated audit alerts, interest on late payments at the Central Bank rate, and even recovery of debts through third parties such as banks or business associates. “A taxable person … shall be liable to a penalty of N100,000 for the first month and N50,000 for each subsequent month the failure persists,” the law reads. Failure to register for a TIN also attracts a penalty of N50,000 for the first month and N25,000 for each additional month.
Permanent Closure Deadline
The March 31 deadline is not a mere suggestion — it is a statutory cut-off. Filing is not optional, and there is no extension. Individuals who fail to file by this date will be marked as non-compliant, triggering the penalties outlined above. With improved digital monitoring, including BVN-linked financial data, tax authorities now have stronger tools to detect non-compliance.
Don’t wait until it is too late. File your nil return today and protect yourself from fines, legal actions, and future complications when you need a Tax Clearance Certificate for loans, visa applications, or business deals.
