27/12/2025
IF YOU USE PALMPAY, OPAY, KUDA OR ANY FINTECH… READ THIS TAX TRUTH CAREFULLY
My brother… my sister…
This question is important, and I’m glad it was asked.
“Iking Ferry, will this new tax law affect people using fintech platforms like PalmPay, Opay, Kuda, etc?”
Short answer?
YES - but not the way many of you are thinking.
Sit down.
Let me explain this clearly, and honestly as your Financial Literacy Advocate.
Because panic without understanding will make people make costly mistakes.
FIRST, Let Me Kill A Big Lie Going Around
“Fintech users will be taxed automatically.”
“Government will tax every transfer.”
“If you use PalmPay, tax man is watching you.”
All these are half-truths mixed with fear.
The government is NOT taxing apps.
The government is NOT taxing transfers.
The government is NOT taxing you because you use fintech.
The government is taxing INCOME.
Whether that income enters through:
– PalmPay
– Opay
– Kuda
– GTBank
– Access
– First Bank
– Cash
Income is income.
The channel does not change the law.
Now Let Me Explain With A Simple Story
Imagine two people:
PERSON A – Salary Earner
– Works in a company
– Salary is ₦180,000 monthly
– PAYE tax is deducted before salary enters account
– Salary enters PalmPay
Question:
Will government tax him again?
NO.
Why?
Because tax has already been deducted at source.
Fintech does not change that.
PERSON B (Mama Ngozi) – Business Owner
– Runs POS / online business / trading
– ₦300k–₦600k enters PalmPay monthly
– No structure
– No records
– Personal account
Now listen carefully…
Government is not looking at PalmPay.
Government is looking at annual inflow.
If her yearly inflow crosses ₦800,000
and she cannot explain it…
She falls under Personal Income Tax (PIT).
Not because of fintech.
But because of income.
Here is the real truth many don’t want to hear
Fintech platforms are not hiding places.
They are:
– Licensed
– Regulated
– Reporting to CBN
– Reporting under AML/KYC rules
From 2026, transaction visibility across platforms will be more integrated.
Not to punish people
but to reduce tax evasion and money laundering.
So the question is not:
“Will fintech users be taxed?”
The correct question is:
“Is the money entering my account taxable income or not?”
Here's What Fintech Users Must Understand
The tax system is now progressive and intelligence-driven.
It looks at:
– Pattern
– Frequency
– Volume
– Nature of inflow
Not just app names.
If your account shows:
– Random gifts
– One-off support
– Medical contributions
– Family upkeep
You are NOT automatically taxed.
But…
If your account shows:
– Daily inflow
– Business pattern
– Customer payments
– Service charges
Then you are running a business.
And businesses must be structured.
As your Financial Literacy Advocate, let me tell you Why Some People Will Enter Trouble In 2026
Not because they used PalmPay…
But because they:
– Mixed business money with personal money
– Kept no records
– Didn’t file returns
– Didn’t separate profit from capital
– Didn’t understand allowable expenses
Ignorance is what creates tax problems.
Not fintech.
SO, WHAT SHOULD FINTECH USERS DO NOW?
Oya... Relax, I g*t you.
If you are a SALARY EARNER
– Relax
– PAYE already covers you
– No double taxation
If you are running BUSINESS on fintech
– Register properly
– Open business or company account
– Separate inflow and expenses
– Keep simple records
– File returns
If money enters your account but is NOT income
– Keep evidence
– Narrations
– Purpose
– Documentation
Tax law does not punish honesty.
It punishes carelessness.
Let Me Say This As An Investor And Accountant
The government is not after poor people.
The government is after:
– Leakages
– Informality
– Unreported income
– Cash-based shadow economy
And fintech made money movement visible.
That visibility is not a curse.
It is a signal to get structured.
Here's my Advice:
Fintech is not your enemy.
Tax is not your enemy.
Ignorance is the enemy.
If you understand the system,
you will not fear 2026.
If you don’t understand it,
panic will make you make wrong moves.
That’s why I teach.
Not to help people run from tax…
But to help them pay what is fair, and nothing more.
If this post helped you,
share it, somebody’s peace of mind depends on it.
Copied: Ferry
