What bookkeeping records must Nigerian businesses maintain?

In 2026, bookkeeping is no longer just about "keeping receipts in a box." Under the Nigeria Tax Act 2025, the Nigeria Revenue Service (NRS) and CAC now mandate digital-first record-keeping.

Failure to maintain these records can lead to the loss of tax exemptions (like the 0% CIT for small businesses) and heavy "Best of Judgment" (BOJ) tax assessments.

1. Mandatory Financial Records

Every registered business must maintain these five core books of account for at least 6 years:

• Sales and Revenue Journal: Detailed records of all income (cash, bank transfers, or POS). You must issue and keep copies of sequential invoices.
• Expense Vouchers & Receipts: Evidence for every kobo spent. To be "tax-deductible," expenses must be Wholly, Reasonably, Exclusively, and Necessarily (WREN) incurred for the business.
• Fixed Asset Register: A list of all equipment, vehicles, and property owned by the business, including purchase date, cost, and depreciation.
• Bank Statements & Reconciliations: Monthly proof that your internal books match your bank transactions. In 2026, the NRS portal can flag discrepancies between bank inflows and declared revenue.
• Inventory/Stock Records: If you sell physical goods, you must maintain a record of stock levels, cost of goods sold, and year-end stock counts.

2. Statutory Books (The "CAC Books")

If you are a Limited Liability Company (LTD), you are legally required by CAMA 2020 to maintain these at your registered office:

• Register of Members (Shareholders): Names, addresses, and shareholding percentages.
• Register of Directors & Secretaries: Details of the people managing the company.
• Minutes Book: Records of all Board Meetings and Annual General Meetings (AGMs).
• Register of Charges: Details of any loans or debentures secured against company assets.
• Register of PSC (Persons with Significant Control): Details of anyone owning 5% or more of the company.

3. Payroll & Employment Records

The NRS and State IRS (like LIRS) monitor these closely to ensure PAYE compliance:

• Staff Salary Schedule: Showing gross pay, net pay, and all deductions (Tax, Pension, NHF).
• TINs for All Employees: In 2026, every employee on your payroll must have a verified TIN (linked to their NIN).
• Remittance Evidence: Receipts for monthly PAYE payments to the state and Pension payments to PFAs.

4. Digital Compliance in 2026

The 2026 reforms introduce "Fiscalization":

• E-Invoicing: For businesses with turnover above ₦100 million, the NRS now requires invoices to be generated via approved software that syncs with the tax portal.
• Digital Backups: While physical receipts are okay, the NRS prefers digital copies. They must be stored in a format that can be produced in hard copy if an auditor visits.

Summary of Retention Periods