By Abubakar Abraham, Joy Salami
Personnel of Kogi State Internal Revenue Service (KGIRS), recently paid a sensitization visit to the management of The Graphic Newspaper, a state-owned media outfit on the 2026 tax reforms.
The visit is part of on going initiatives tailored towards educating stakeholders most especially the public on their obligations regarding deduction and remittance of Withholding Tax (WHT), in line with the Nigeria Tax Act 2025, which came into effect from January 1, 2026.
The visit, centered around the theme ” Sensitization on Deduction and Remittance of Withholding Tax (WHT),” is designed to keep organisations like The Graphic abreast of updated tax regulations under the sweeping reforms.
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These changes expand the tax net, promote digital compliance, and clarify distinctions between federal and state jurisdictions for improved transparency and efficiency.
During the interactive session, KGIRS representatives outlined key aspects of the 2026 reforms, including:
– 10% WHT on Interest from Foreign Currency (FCY) Deposits: Effective January 1, 2026, banks will deduct 10% WHT on interest earned from FCY accounts.
-Exemption for Personal Remittances: Funds sent for family support, gifts, or personal projects remain non-taxable and exempt from WHT.
– Taxation of Worldwide Income: Nigerian residents (those spending over 183 days in the country) are now taxed on global income, subject to Double Taxation Agreements.
– Updated WHT Rates: Rates range from 2% to 10% across transactions. For instance, supply of goods or materials by non-manufacturers attracts 2%, while rent, management fees, directors’ fees, and winnings from lotteries/games are at 10%. Professional fees, consultancy, construction/technical services, and commissions/brokerage are generally 5%.
– Jurisdictional Distinctions: The Federal Inland Revenue Service (FIRS) primarily handles corporate WHT, non-resident payments, and certain fees, while State Internal Revenue Services (SIRS) like KGIRS focus on individuals, sole traders, partnerships, and personal income tax-related matters.
– Digital Compliance and Penalties: Real-time digital tracking monitors transactions, with mandatory electronic documentation. Failure to deduct or remit WHT attracts a 10% penalty on the undeducted amount. WHT returns must be filed by the 21st day of the following month.
– Small Business Relief: Entities with turnover below N50 million and assets under N250 million enjoy exemptions from many WHT obligations.
– Additional Notes: A new annual income tax-free threshold of ₦800,000 applies to personal income tax, though WHT on specific payments remains in force. Side hustles, income from digital platforms (e.g., YouTube, TikTok), and gains from crypto/forex are now taxable where they represent profits.
The spokesperson from KGIRS, Hajia Khadijat Ozavize, expressed gratitude to the management of The Graphic Newspaper for their warm reception and active participation.
She emphasised the importance of such engagements in fostering voluntary compliance and supporting the state’s revenue generation goals under the Governor Ahmed Usman Ododo led administration.
In his response, the Managing Director of The Graphic Newspaper, Mr Yusuf Itopa, commended the KGIRS team for the enlightenment , describing it as timely and valuable.
According to him, the session equipped the organisation with essential knowledge to fulfill its tax responsibilities effectively amid the new regime.
He then pledged the newspaper’s continued support for government initiatives aimed at economic transparency and growth.
The sensitisation aligns with broader efforts by KGIRS to engage stakeholders across sectors as Kogi domesticates and implements the federal tax reforms, which came into effective January 1, 2026.
Such proactive outreach is expected to ease compliance burdens while boosting state revenue for developmental projects.
