Enough time has passed and frantic non-income earners such as this have been affected by the unavoidables of “grownupicity” in the language of Jola
It is a pleasure to tell you how you might be affected as a university student, work on-the-side or not.
Before we get into it, let’s review what the Personal Income Tax (PIT) is;
Nigeria’s Personal Income Tax (PIT) is a compulsory tax on individual income including salaries, business profits, side-income and dividends and is described under the Personal Income Tax Act (PITA).
The Nigeria Tax Act (NTA) 2025 clarified resident and non-resident taxable income. Resident taxable income applies to individuals who have a permanent residence in Nigeria, of which taxation is applicable to their Nigerian based sources of income.
Remote workers whose income is earned through non-Nigerian based sources are not subject to taxation.
Non-resident income is only taxable if earned through Nigerian-based sources.
Individuals with no taxable income comprise those whose combined income, including business profits, dividends and side-income, is below the minimum taxable income of ₦800,000 for income earned in 2026 and ₦300,000 in 2025 are not expected to remit tax from their total income. This is applicable for income earned onwards from January 2026. Income earned that is up to ₦300,000 before 2026 (in 2025) attracts an income tax of 7%.
Below is an income band and tax rate structure for income earned in 2025:
| Income Band | Tax Rate |
| The first ₦300,000 earned annually | 7% |
| Your next ₦300,000 (Indicating annual income as) ₦300,001 – ₦600,000 | 11% |
| Your next ₦500,000 (Indicating annual income as) ₦600,001 – ₦1,100,000 | 15% |
| Your next ₦500,000 (Indicating annual income as) ₦1,100,001 – ₦1,600,000 | 19% |
| Your next ₦1,600,001 – ₦2,700,000 | 21% |
| ₦2,700,000+ | 24% |
The income band and tax rate for income earned in 2026 is:
| Income Band | Tax Rate |
| ₦800,000 and below | 0% |
| Earned ₦2,200,000 for income between ₦800,001 – ₦3,000,000 | 15% |
| Earned ₦22,000,000 for income between ₦3,000,001 – ₦25,000,000 | 18% |
| Earned ₦25,000,000 for income between ₦25,000,001 – ₦50,000,000 | 21% |
| ₦50,000,000+ | 25% |
Deductible expenses before calculating tax include:
- 20% off annual rent ranging ₦500,000 and below.
- Pension payments (accumulating up to 8% of income).
- National Housing Fund which covers 2.5% of basic income
- Life insurance costs of up to ₦100,000
Should you file your tax as a student in Nigeria?
If you are self-employed, work remotely for a Nigerian based organisation or an employer, you are expected to file your taxes using the appropriate state tax filing website based on the state you reside in:
Abia State – abiairs.gov.ng
Adamawa State – ad-irs.adamawastate.gov.ng
Akwa Ibom State – akirs.ak.gov.ng
Anambra State – tax.services.an.gov.ng
Bauchi State – birs.bu.gov.ng
Bayelsa State – bir.by.gov.ng
Benue State – birs.be.gov.ng
Borno State – birs.bo.gov.ng/menu/tax-filling
Cross River State – crirs.crossriverstate.gov.ng
Delta State – deltairs.com
Ebonyi State – tax.ebsirb.eb.gov.ng
Edo State – eirs.gov.ng
Ekiti State – ekitistaterevenue.com
Enugu State – irs.en.gov.ng
Gombe State – irs.gm.gov.ng
Imo State – iirs.im.gov.ng
Jigawa State – jsirs.org.ng
Kaduna State – kadirs.kdsg.gov.ng
Kano State – kirs.gov.ng
Katsina State – irs.kt.gov.ng
Kebbi State – irs.kb.gov.ng/etax
Kogi State – https://irs.kg.gov.ng/kg_irs_annual_filling_notice.pdf
Kwara State – irs.kw.gov.ng
Lagos State – etax.lirs.net
Nasarawa State – irs.na.gov.ng
Niger State – nigerigr.ngsirs.gov.ng or ngsirs.gov.ng
Ogun State – portal.ogetax.ogunstate.gov.ng/login
Ondo State – iondo.ondostate.gov.ng/register orodirs.ng
Osun State- irs.os.gov.ng/download/p-a-y-e-electronic-tax-clearance-form/
Oyo State – bir.oyostate.gov.ngor selfservice.oyostatebir.com
Plateau State – psirs.gov.n
Rivers State – riversbirs.gov.ng
Sokoto State – itas.irs.sk.gov.ng/login
Taraba State – mda.tarababir.gov.ngor tarabaitas.ng/login
Yobe State – irs.yb.gov.ng
Zamfara State – irs.zm.gov.ng
FCT (Abuja)- fctirs.gov.ng
If you are unemployed and have no side gigs, dividends from investments and rental property income, you are not liable to penalisation for not filing taxes.
What happens if you do not file your taxes as a student earning income?
If you fail to file your taxes, you may initially be fined ₦100,000, with an additional ₦50,000 for each subsequent month of default. You may also be denied a tax clearance certificate and could face restrictions on certain processes such as accessing bank loans, applying for visas, or renewing your passport. In more serious cases, this may also lead to legal penalties.
Bio: Faizat is a data analyst who also enjoys exploring creative and entrepreneurial pursuits. Her work centres on lifestyle, work, and smart money habits
Instagram: @schoon.heid
LinkedIn: @Faizat Hussein