This article tracks how Nigerians earned, spent, saved, and lost money in 2025, a year defined by sweeping tax reforms, fast-moving fintech innovation, and tighter government oversight.
From banks’ spending patterns and shifting tax rules to crypto regulation, ATM revival, and the rise of mobile money giants, the series examined what financial flows reveal about priorities both personal and institutional in a rapidly evolving economy. As 2026 approaches, here are the defining money stories from the year and what they signal next.
Taxation Expands to Remote Workers and Freelancers
In one of 2025’s most consequential reforms, Nigeria broadened its tax net to include remote workers and freelancers, effective January 2026.
The new law mandates personal income tax on Nigerians earning income locally or abroad, regardless of where payments are received. Salary tax is capped at 25%, lower than rates in South Africa (45%), Kenya (35%), Egypt (27.5%), and Algeria (35%).
Signed in June 2025, the reform targets a rise in Nigeria’s tax-to-GDP ratio from below 10% to 18% by 2027. Income earned abroad by Nigerian residents is taxable even if not repatriated, including earnings from countries with tax exemptions or diplomatic arrangements.
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Freelancers must now register with tax authorities. Penalties for non-compliance start at ₦50,000 for the first month, ₦25,000 for each additional month, while failure to file returns attracts fines from ₦100,000 monthly. False declarations can result in fines up to ₦1 million, imprisonment for up to three years, or both.
Cryptocurrency Gains Come Under the Tax Net
From January 2026, profits from cryptocurrency trading will be taxable in Nigeria.
According to Taiwo Oyedele, chairman of the Presidential Fiscal Policy and Tax Reforms Committee, only net gains will be taxed, with profits below ₦800,000 exempt. Losses, however, will not be deductible.
Between July 2024 and June 2025, Nigerians traded $92.1 billion worth of crypto, cementing the country’s status as one of the world’s most active crypto markets. Although a 10% digital asset tax existed under the 2022 Finance Act, enforcement was weak.
The new framework requires self-declaration by traders and obliges exchanges to monitor and report transactions. Non-compliant platforms face fines starting at ₦10 million, with possible licence suspension or revocation by the SEC.
ATMs Make a Comeback
After years of decline, ATMs regained relevance in Nigeria’s cash-heavy economy.
In Q1 2025 alone, ATM withdrawals hit ₦15.98 trillion, a 192.7% year-on-year increase following CBN measures to rein in PoS agents and mandate wider ATM deployment.
Proposed rules require banks to install one ATM per 5,000 active cardholders, with compliance targets of 30% by 2026, 60% by 2027, and full compliance by 2028. The shift marks a return to ATM-first cash access after PoS dominance.
Money Transfers Get More Expensive in 2026
From January 2026, transfers of ₦50,000 and above will attract an extra ₦100 charge—not due to bank fees, but because Nigeria is reintroducing stamp duty under the Nigeria Tax Act 2025.
This replaces the Electronic Money Transfer Levy (EMTL), which charged ₦50 per transaction and was paid by recipients. Under the new system, senders will bear the cost, in addition to existing bank transfer fees.
As a result, transfers above ₦10,000 will cost between ₦75 and ₦100 per transaction, slightly increasing costs for individuals while easing deductions for businesses and PoS agents.
OPay and PalmPay Rule Microtransactions
In 2025, OPay and PalmPay entrenched their dominance of Nigeria’s microtransaction market.
Mobile money transactions reached ₦20.71 trillion in Q1 2025, up 1,518.6% from Q1 2021. Much of this growth flowed through the two platforms, boosted by reliability and consumer trust during banking disruptions.
By year-end, OPay surpassed 20 million daily active users, while PalmPay processed over 15 million daily transactions. Both are now pushing card-based products to reach semi-digital and offline users in 2026.
Banks Fight Back in the Digital Race
Despite fintech growth, banks showed renewed competitiveness. Mobile app payments rose 33.65% year-on-year to ₦104.07 trillion in Q1 2025, driven by improved digital infrastructure.
GTCO’s GTWorld and GAPS/GAPSLite apps alone processed ₦35.8 trillion in the first half of the year, highlighting banks’ push to reclaim digital ground through better core systems, ATM networks, and fraud controls.
Looking Ahead
2025 was the year Nigeria designed its new financial rules. 2026 will be when Nigerians feel their full impact from higher transfer costs and crypto taxes to stricter income reporting and evolving payment habits.
As always, Follow the Money will continue tracking where the money goes and what it reveals about Nigeria’s economic future.
Note: Exchange rate used is ₦1,443.38 per $1.
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