As an entrepreneur, one of the things you should not waste your time doing is being ignorant; numbers especially, will punish you. We are eleven days into the new year and one of the TOP concerns is how the new tax law that was passed into our country last year which just took effect from January 1st, 2026. The long awaited 2026 is here, how will smaller businesses and individuals be doing?
When it comes to government taxing, where would you want to fall under; those that don't pay, those who pay little or those that pay huge? Yes, every option has its T and C’s, something that not everyone take time to punch a calculator and align the calculations.
Ok, to many who feel tax exempted, the idea is that the Federal government has been good to them while taxing the big money makers. It was something I just discussed with someone this evening. In short, I had to pause this article to get more clarity as it seemed like an opportunity to get some needed updates.
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One of the things he did point out was the fact that my brand doesn't meet up the taxing requirements for NOW. According to his own source, the requirements for taxation was N100 million plus, something I am not much cleared about because I have seen updates that have categorized the taxing into two sets while allowing workers earnings 800K yearly to go scot free.
Personally, I wouldn't call that a relief to be a small business just to avoid paying a huge tax of up to 25%. On the other hand, it has been something I have been discussing with him, the fact being that the government is indirectly taxing the downtrend masses (Small and Medium scale entrepreneurs and the remaining masses).
Anyway, it is something I will be diving deep into in another article. My view was the fact that since it is let assume a 25% tax, no matter the profit, they still pay 25%. Oh! Maybe this is me failing to understand the fact that this big businesses have a yearly revenue target and whatever should be taxed should not push them below the benchmark; another broader article I guess.
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I have been able to pick up some valuable information both online and from a mouth conversation with a friend today. He owns a business in another part of the state and was telling me how he runs it. In short, I got some other exposures in the process, there are some business standards that we are yet to meet up. His words of encouragement was that I shouldn't be worried about paying my tax should in case it comes up
He has some point there, the government needs this tax generated revenue to put back into the economy; if and only if they will. That was my top concern and a response I gave him. There has been so much financial and resource sabotage over the years. It is one that will make citizens grumble on why the government should be coming back to still take from their assumed little.
As I earlier said, there is still a lot of digging to go through to get enough information as to how to run business this year and stay profitable. At least I just got that idea this evening that only business accounts will be charged and registering our brand as a company, I know this will require us to be more sincere with the governments.
To conclude, let me add, my first concern was how the government will be doing my complete account summary and charging us. Let's just say someone used me as a medium to reach out a transaction to someone else and at the end of the year tally, I get taxed in general just because in general because I decided to offer help?. That was a big NO from that friend, from his business experience although he has other accounts and BVN makes it easy to track down ALL his transactions, FIRS (Federal inland revenue service) only audit his business account, period.
This is an article covered by dani-EL; a broad niche writer. I write on faith, life facts and daily living, business and economics, small scale and daily businessing, cryptocurrency and technology. And yes, I do cover articles on financial education and investment updates. And note, if I happen to be a financial adviser to you, the top financial advice should be ‘DYOR’ (Do Your Own Research), I can't afford to break your heart.
