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Throughout 2025, TechCabal released approximately 21 editions of Follow the Money, a series dedicated to analyzing how Nigerians earned, spent, saved, and lost money amid a year marked by significant policy reforms, fintech advancements, and increased government scrutiny.
Our coverage delved into various facets of the financial landscape-from banks’ expenditure patterns and evolving tax regulations to Jumia’s revenue strategy shifts and the adaptive behaviors of individuals and corporations navigating a rapidly transforming economic environment. Central to this exploration was a fundamental inquiry: what do spending habits reveal about the priorities of individuals and institutions?
In a market-driven economy, financial flows serve as the clearest indicators of corporate and personal interests. Tracking these movements offers insights into a company’s vitality, policy trajectories, and broader economic trends. In 2025, we observed how Nigerians managed their finances amid new regulatory frameworks, accelerated payment systems, and changing incentives.
Each installment of the column highlighted emerging trends and forecasted financial directions for 2026. Below are key developments to watch as we move into the new year:
Taxation Expands to Include Remote Workers and Freelancers
In a landmark move, Nigeria enacted comprehensive tax reforms in 2025, bringing remote workers and freelancers under the tax umbrella starting January 2026.
The updated legislation mandates personal income tax on Nigerians earning income domestically or internationally, irrespective of the payment location. The maximum tax rate on salaries is capped at 25%, which remains competitive compared to South Africa’s 45%, Kenya’s 35%, Egypt’s 27.5%, and Algeria’s 35%.
Signed into law in June 2025, this reform aims to elevate Nigeria’s tax-to-GDP ratio from below 10% to 18% by 2027. It explicitly states that income earned abroad by Nigerian residents is taxable, even if not repatriated.
Additionally, salaries earned by Nigerians working in countries with tax exemption agreements or diplomatic arrangements with Nigeria are subject to Nigerian taxation.
Freelancers are now required to register with tax authorities. Non-compliance results in penalties starting at ₦50,000 ($34.64) for the first month and ₦25,000 ($17.32) for subsequent months. Failure to file tax returns incurs fines beginning at ₦100,000 ($69.28) and ₦50,000 ($34.64) monthly thereafter. False declarations can lead to fines up to ₦1 million ($692.82), imprisonment for up to three years, or both.
From 2026 onward, Nigerians working remotely for foreign companies will be fully integrated into the tax system.
Cryptocurrency Gains Subject to Taxation
Starting January 2026, profits from cryptocurrency transactions will be taxable under Nigerian law.
“The forthcoming legislation will tax net gains from crypto investments while disregarding losses,” explained Taiwo Oyedele, chairman of the Presidential Fiscal Policy and Tax Reforms Committee, in an October interview with TechCabal. “Investing in crypto is not illegal. If your net profit is below ₦800,000, you owe no tax.”
Between July 2024 and June 2025, Nigerians conducted $92.1 billion (₦132.94 trillion) worth of crypto transactions, positioning Nigeria among the globe’s most active crypto markets. The new tax framework seeks to formalize this rapidly expanding sector, which has historically eluded regulation.
Although a 10% tax on digital asset profits was introduced in the 2022 Finance Act, enforcement was lax. The 2026 rules will require crypto traders to self-declare earnings.
To enhance compliance, crypto exchanges must now monitor and report user transactions. Platforms failing to comply face fines of ₦10 million ($6,928.18) in the first month and ₦1 million ($692.82) monthly thereafter, with potential license suspension or revocation by the Securities and Exchange Commission (SEC).
ATMs Regain Prominence in Nigeria’s Cash Ecosystem
After a period of decline, Automated Teller Machines (ATMs) are experiencing a resurgence in Nigeria’s predominantly cash-based economy.
In the first quarter of 2025 alone, ATM withdrawals surged to ₦15.98 trillion ($11.07 billion), marking a 192.7% increase compared to the same period the previous year. This revival follows new Central Bank of Nigeria (CBN) directives that tighten oversight of Point of Sale (PoS) agents and mandate broader ATM deployment.
Under proposed regulations, banks are required to install one ATM per 5,000 active cardholders, with compliance targets set at 30% by 2026, 60% by 2027, and full adherence by 2028. This shift signals a strategic pivot back to ATM-first access after years dominated by PoS transactions.
Consumers can anticipate a proliferation of ATMs and stricter regulation of PoS operations throughout 2026.
Rising Costs for Money Transfers in 2026
Beginning January 2026, transferring ₦50,000 ($34.64) will incur a ₦100 fee, not due to changes in bank pricing but because of a shift in tax liability.
Five years after replacing stamp duty with the Electronic Money Transfer Levy (EMTL), Nigeria is reinstating stamp duty under the Nigeria Tax Act 2025.
Previously, EMTL imposed a flat ₦50 charge on transfers of ₦10,000 ($6.93) and above, paid by the recipient. From 2026, the sender will bear this cost, which will be added on top of existing transfer fees.
Currently, banks charge ₦10 for transfers below ₦5,000; ₦25 for transfers between ₦5,001 and ₦50,000; and ₦50 for transfers exceeding ₦50,000.
With the reintroduced stamp duty, transfers above ₦10,000 will cost between ₦75 and ₦100 per transaction. While this alleviates the burden on businesses and PoS agents from deducting fees on incoming payments, it marginally increases costs for individual users.
OPay and PalmPay Dominate Nigeria’s Microtransaction Market
In 2025, OPay and PalmPay solidified their leadership in Nigeria’s microtransaction ecosystem.
Mobile money transactions reached ₦20.71 trillion ($14.35 billion) in Q1 2025 alone, a staggering 1,518.64% increase from ₦1.28 trillion ($886.81 million) in Q1 2021. A significant portion of this volume was processed through these two platforms, whose growth was fueled by reliability, timing, and consumer trust-especially during banking disruptions such as the 2022 naira redesign and recurrent outages in 2024.
By the end of 2025, OPay boasted over 20 million daily active users, while PalmPay processed more than 15 million daily transactions. Both companies are now focusing on card-based solutions to engage semi-digital and offline users in 2026.
Overall, 2025 demonstrated that mobile applications have become the preferred channel for cash movement in Nigeria, prompting banks to intensify investments in digital infrastructure. Mobile app payments surged 33.65% year-on-year to ₦104.07 trillion ($72.10 billion) in Q1 2025, driven by smartphone penetration and renewed banking sector focus on core systems, digital platforms, ATM networks, and fraud prevention.
Banks have shown they can compete with fintechs; for example, GTCO’s apps-GTWorld and GAPS/GAPSLite-handled ₦35.8 trillion ($24.80 billion) in the first half of 2025 alone. Whether this momentum continues into 2026 remains to be seen.
The way Nigerians earn, spend, and transfer money is evolving rapidly, shaped by new tax laws and policy reforms. While 2025 was the year these financial regulations were crafted, 2026 will be when their full impact unfolds. As always, we will continue to track these developments closely.
Note: Exchange rate used is ₦1,443.38 per $1.
