31/08/2025
Before You Cry Like Peller, Read This
I came across a trending news on Premium Times newspaper,
The news says that Peller, the TikToker, is crying out for help after the Lagos State Government slammed him with a ₦36 million tax bill.
When I came across some of Peller’s video clips, it was funny to me because he said he doesn’t own a company and thought it’s only companies that pay tax.
He also said he can’t pay such an amount because he doesn’t have a job, that he only makes money online on TikTok and not in Nigeria.
Let me tell you the truth,
the law doesn’t care about your ignorance.
Some of you reading this will also cry more than PELLER starting from 2026 if you fail to restructure yourself and your business now.
I have been preaching business structuring here on Facebook since the day of my project research defense in UNILAG.
First of all, I want you to know that everyone pays tax, whether rich or poor.
In fact, the poor actually pay more tax than the rich because 99% of them don’t know how to legally reduce their tax burden.
But since it’s my duty to see you grow, let me give you the best advice your mentor will never give you for free.
Take a seat and read this post, let me tell you how to escape from the same trap Peller has found himself in now, because from next year, there will be no escape.
In Nigeria, we currently practice a multi-tier, mixed tax system which can be confusing and sometimes leads to one being overtaxed or undertaxed. But the present government has passed a new law which means that from 2026, Nigeria will start practicing a Progressive Tax System.
This means that the more income you have, the higher the taxes you pay.
From next year, the rich will pay higher tax, while the poor will pay smaller amounts, and in some cases, nothing at all, depending on earnings.
Let me remove all the big grammar in taxation for those of us that studied Financial Accounting in school 😂 and break this down to you as if you were in primary two.
The new tax law, commencing fully in 2026, states that any individual earning less than ₦800,000 per year will pay no tax at all.
And any company with less than ₦50 million yearly turnover will also pay no tax at all.
Now, let's talk about who Must Pay Tax from 2026
In taxation, we their is what we called PIT and CIT:
PIT means Personal Income Tax (for individuals)
CIT means Corporate Income Tax (for companies)
With the new progressive tax system, if you earn above ₦800,000 as an individual, you are required to pay about 15–25% of that money to the Federal Government.
For example:
₦0 – ₦800,000 = 0% tax
₦800,001 – ₦3,080,000 = 15% tax
₦3,080,001 – ₦12,320,000 = 18% tax
₦12,320,001 – ₦24,640,000 = 21% tax
₦24,640,001 – ₦49,280,000 = 23% tax
Above ₦49,280,000 = 25% tax
In summary: If you make around ₦50 million in a year, you are to pay ₦12,500,000 to the Federal Government.
For Companies:
Anything less than ₦50 million = no tax
Above ₦50 million yearly turnover = 25% corporate tax
You see why you must restructure your business and see yourself as a brand, a company, and not just “catching cruise” watching TikTok videos online.
For the Lagos State Government to bill Peller ₦36 million in tax, if we calculate using the new progressive system, it means he has made more than ₦152 million.
And let me tell you the truth, the government knows the inflow and outflow in your account. For them to have come up with that figure, it means they have done their background checks.
The best advice anyone can give Peller now is to hire a tax expert to review his accounts and negotiate with the government. If not, there is no escape.
The reason why this tax issue seems strange to some of you is because the system wasn’t properly organized, and it’s only Lagos State Government that takes tax seriously.
But from next year, no more “state this, state that.”
From 2026, the Federal Government will collect the tax directly.
And there will be no way to escape. The same cry Peller is crying now, some of you will cry on this same social media when the time comes.
It’s just 5 months to go before we enter 2026.
And don’t think the government can’t track your income, my friend, that’s a lie.
With the new technology in place, the government can track your income just with your NIN and BVN. Even if you scatter your money across 20 different banks, NO ESCAPE 😂.
Now, as you’re reading this, you may be wondering: How do we reduce our tax?
My brother, I have good news for you, so you won’t make the same mistake Peller made, whether you’re a content creator, blogger, businessman, or even a beggar (oh yes, begging is now a business in Nigeria; haven’t you heard about “urgent 2k” boys and girls?).
First, you need to Restructure Your Business.
Restructuring starts with registering your business properly. Instead of registering your business as a Business Name, register it as a Limited Liability Company (Ltd).
With this, your business is a separate entity and you are also a separate entity.
PLEASE NOTE: when you register as a BUSINESS NAME, my sister or brother, you don’t have a company yet ooo.
What you have is called a sole proprietorship, which means a one-man business.
You are not separated from your business, and all your income is counted as personal income tax, not corporate income tax.
One major advantage of having an Ltd is that, before you pay any tax, you are permitted to deduct your expenses, including operational costs, salaries, marketing costs, etc.
That’s why those who understand stock market fundamentals analysis see things like “PROFIT BEFORE TAX” and “PROFIT AFTER TAX.”
If Peller had structured his brand before now, collect all his revenues under corporate account and registered something like “Peller Entertainment Ltd,” he could have deducted expenses such as cameraman salary, video editors, equipment, and other costs.
His tax bill could have been less than ₦10 million, or even ₦5 million.
For those of you arguing with me in the comments section of my last post about, "Why Igbo Businesses failed after the Founder's death", that business structuring does not matter, you now see one of the advantage of structuring your business.
Another important point,
After registering as Ltd, stop collecting payments with your personal account. Use your corporate account for all payments.
And for those of you whose friends abroad send ₦100 million to your account to buy land or houses in the village, my friend, you must pay tax on all that income from next year😂.
Separate your personal money from your business money.
Stop buying groundnuts and corn with your corporate account.
Pay yourself a salary. Being CEO and sole director doesn’t mean you should dip into company funds to buy shawarma for your urgent 2k girlfriend.
Not paying yourself a salary is not a sacrifice, it’s financial mismanagement.
Document all your income and expenses. Avoid cash transactions where possible.
And if you must use cash, keep receipts (not invoices, many don’t know the difference). I’ll save that topic for another day.
*COPIED*
