…Pensions, gratuities remain tax-free
By Kingsley Omonobi
The Military Pensions Board (MPB) has assured retired military personnel that their pensions, gratuities, and death benefits remain fully exempt from taxation under the newly enacted Nigerian Tax Administration Act (NTAA) 2025.
The clarification follows concerns raised by veterans after President Bola Tinubu signed the NTAA into law on May 22, 2025. The law, which introduces wide-ranging reforms, is scheduled to take effect from January 1, 2026.
One of the key provisions of the NTAA is the mandatory use of a Tax Identification Number (TIN) for all financial transactions, including banking, insurance, and investment services. The law also introduces progressive taxation on annual personal incomes above ₦800,000.
In an advisory issued to the veterans’ community, both at home and abroad, the MPB emphasized that the new rules do not affect military pensions or related entitlements.
“All pension payments, gratuities, and death benefits to Next-of-Kin will continue to be disbursed in full, without any deductions or tax liabilities,” the Board stated. “This exemption is consistent with long-standing federal policy protecting military retirement benefits from taxation.”
The clarification provides relief to thousands of military retirees and families who rely on these payments for their livelihood.
While pensions remain tax-free, the MPB urged all military pensioners to obtain their TINs before the law takes effect, as TINs will be required to maintain access to financial services.
Veterans can register for a TIN through the Joint Tax Board (JTB) mobile app on Android and iOS devices, or via the JTB website. Registration requires a Bank Verification Number (BVN), National Identification Number (NIN), date of birth, and other personal details. TIN certificates are typically issued by email within 24 to 72 hours.
Observers have commended the MPB for early communication, noting that clear guidance is essential to avoid confusion as Nigeria transitions to the new tax system.
The Federal Government has also reiterated its commitment to shielding vulnerable groups, including veterans, from the impact of the reforms.
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