Nigeria's tax architecture has changed but some employer payroll systems have not caught up. The Nigeria Tax Act 2025 and the Nigeria Tax Administration Act 2025 took effect on 1 January 2026 and redefined significant aspects of how PAYE operates; from a new six-band tax structure, to changes affecting gratuity, NHF deductions, severance benefits, and others. If your payroll system has not been updated to reflect these changes, every pay slip generated since 1 January 2026 has been based on outdated systems, exposing your organization to compliance risk and penalties. This article examines what employers need to do to bridge the gap in light of the new tax law regime.
Habibat is an Associate within the firm’s Intellectual Property & Technology and Employment practice groups, and member of the Data Protection practice. She has a background in the media, sports, entertainment and technology (MSET) sectors, advising clients on a wide range of issues relating to data protection, intellectual property, advertising, financial and digital technology.
She demonstrates great knowledge in data protection principles and regulations by advising the firm’s clients on regulatory requirements in Nigeria, facilitating the filing of annual data protection audits, keeping abreast with regulatory updates and changes; ensuring only quality and exceptional services are delivered to the clients. Her work cuts across providing advice on clients’ day-to-day transactions through negotiations, due diligence, contracts review, legal drafting and general data protection advisory services.
Habibat works for start-ups, financiers/investors, fintech firms, education institutions as well as other established companies.
Professional Qualifications
- B.L. Nigerian Law School (2021).