Cynthia Ezegwu
The Military Pensions Board (MPB) has reassured retired military personnel that their pensions, gratuities, and death benefits will remain exempt from taxation despite the enactment of the Nigerian Tax Administration Act (NTAA) 2025.
The clarification follows concerns raised by veterans after President Bola Tinubu signed the law on May 22, 2025, with implementation scheduled to begin on January 1, 2026.
In an advisory issued on Monday, the Board stressed that the exemptions are consistent with federal policy protecting military retirement benefits.
“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 MPB stated.
The NTAA introduces major reforms, including mandatory use of a Tax Identification Number (TIN) for all financial transactions and progressive taxation on annual personal incomes above ₦800,000.
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While pensions are unaffected, the MPB urged all military retirees to obtain their TINs before the law takes effect to maintain access to financial services. Registration can be completed via the Joint Tax Board’s mobile app or website using Bank Verification Number (BVN), National Identification Number (NIN), and other personal details.
Observers have commended the Board’s early communication, describing it as vital to easing the transition into the new tax regime.
The Federal Government has also reiterated its commitment to shielding veterans and other vulnerable groups from the impact of the reforms.