March 31 tax filing in Nigeria: Everything you need to know

Nigeria’s tax compliance culture is facing a critical test, and the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, believes the time for excuses is over. Speaking during a high-level webinar targeted at corporate and financial professionals, Oyedele issued a firm call to action: Nigerians must file their annual tax returns, whether as employers or individual taxpayers.

The webinar, organised in collaboration with the Joint Revenue Board, brought together HR managers, payroll officers, chief financial officers (CFOs), and tax managers—key players in Nigeria’s tax ecosystem. According to Oyedele, despite multiple reforms and awareness campaigns, compliance with annual tax return filings remains disturbingly low across the country.

A Compliance Gap That Can No Longer Be Ignored

Oyedele revealed that self-assessment tax filing—particularly among individuals—is one of the weakest links in Nigeria’s fiscal system. He described the situation as alarming, noting that even the most economically advanced states struggle to achieve meaningful compliance rates.

“In many states, more than 90 per cent of eligible taxpayers do not file returns,” he explained. “In fact, even the most sophisticated states cannot confidently say that up to 5 per cent of taxpayers file their annual returns.”

This gap, he warned, undermines revenue generation, weakens governance, and limits the government’s ability to provide essential services.

Employers Still Have Work to Do

Addressing employers directly, Oyedele reminded organisations that filing annual tax returns for employees is not optional. Employers are legally required to submit returns detailing employee emoluments, tax deductions, and projections for the year.

While acknowledging that some organisations have already complied, he stressed that others are racing against time. Employers who have not filed are left with only a narrow window to do so before penalties apply.

Employer annual returns, he clarified, are due by January 31 each year, covering all staff salaries and deductions for the preceding fiscal period.

Why Employees Must Also File—Even After PAYE Deductions

One of the most widespread misconceptions in Nigeria’s tax system, Oyedele noted, is the belief among employees that once their taxes are deducted through the Pay-As-You-Earn (PAYE) system, their obligations end.

“That assumption is completely wrong,” he stated emphatically. “Whether under the old tax laws or the new ones, employees are still required to file their annual tax returns.”

This requirement applies regardless of income level. Even low-income earners are expected to file returns, reinforcing transparency and accountability within the tax system.

Making Tax Filing Easier

Recognising the challenges taxpayers face, Oyedele assured Nigerians that tax authorities are actively working to simplify the filing process. According to him, the Joint Revenue Board and various State Internal Revenue Services are reviewing systems and processes to reduce complexity and improve accessibility.

Taxpayers, he reminded, must file their individual returns by March 31 of each year, covering income earned in the previous fiscal year.

New Disclosure Rules for Tax Incentives

Another major shift under Nigeria’s evolving tax framework is the requirement for businesses enjoying tax incentives to declare them openly. Oyedele explained that companies benefiting from exemptions, reliefs, or incentives must now disclose such advantages when filing returns or shortly afterward.

This measure, he said, is aimed at improving transparency and ensuring incentives are properly monitored and justified.

A Turning Point for Nigeria’s Tax Culture

Oyedele’s message was clear: tax compliance is no longer a matter of convenience—it is a civic responsibility. As Nigeria reforms its fiscal policies to support sustainable development, broad-based compliance will determine the success or failure of those reforms.

The challenge now lies not in the absence of laws, but in the willingness of citizens and organisations to obey them.

Frequently Asked Questions (FAQ)

Do employees need to file tax returns even if PAYE is deducted?
Yes. Employees are legally required to file annual tax returns even if their employer deducts PAYE.

What is the deadline for individual tax returns in Nigeria?
Individual taxpayers must file returns by March 31 each year.

When must employers submit annual tax returns?
Employer annual returns are due by January 31 every year.

Do low-income earners need to file tax returns?
Yes. Filing is mandatory regardless of income level.

Are businesses required to disclose tax incentives?
Yes. Under the new tax laws, companies enjoying tax incentives must disclose them when filing returns or shortly after.