FG issues order on bank accounts nationwide

THE Federal Government has ordered banks and other financial institutions nationwide to start sending monthly reports of large transactions.

Under the updated tax law, individuals whose total transactions go above N25 million in a month, and companies with over N100 million, must be flagged and reported.

The directive is part of changes in the amended Nigerian Tax Act, which will begin fully in January 2026.

Banks, insurance companies, and stockbrokers will now send both quarterly and monthly updates to the Federal Inland Revenue Service, which will be renamed Nigeria Revenue Service.

Each monthly report must contain the names and addresses of customers whose transactions cross the new limit.

This is different from the older rule that focused on single cash deposits of ₦5 million or more from individuals.

The government said the update became necessary because financial crimes are growing more complex and many transactions now take place online, making older methods less effective.

This move is also tied to efforts to improve Nigeria’s financial record-keeping and meet international standards.

In 2023, Nigeria was added to the Financial Action Task Force grey list for weak controls on money laundering and terrorist financing.

Since then, the country has carried out several reforms.

In November 2024, the Nigerian Financial Intelligence Unit reported progress in five of the key areas listed by the global watchdog.

There is now growing hope that Nigeria could be removed from the grey list soon.

Officials said the new rule will help raise government revenue and reduce illegal financial activities.

Full compliance is expected when the law takes effect, and there will be penalties for failure to follow it.