FG Orders Banks to Report Large Transactions to Tax Authorities

The Federal Government has announced a new regulation mandating all banks and financial institutions to submit monthly reports of high-value transactions to the Federal Inland Revenue Service (FIRS). According to the directive, any transaction above ₦25 million by individuals and above ₦100 million by corporate organisations must now be reported.

This policy, introduced under Section 28 of the recently signed Finance Act 2024, is designed to boost tax compliance and help the government track money flow more efficiently. The FIRS stated that the data collected from banks will assist in identifying individuals and businesses who may be under-reporting their income or failing to pay appropriate taxes.

Banks are now expected to file these reports on or before the 21st of every month using the prescribed electronic format. The move has stirred mixed reactions among Nigerians, with some raising concerns about privacy and potential abuse, while others see it as a necessary step to improve accountability and expand the country’s tax net.

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