Tax reforms to rely on self-declaration, not direct access to bank accounts
The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr. Taiwo Oyedele, has addressed widespread concerns surrounding Nigeria’s new tax laws, assuring citizens that there will be no automatic deductions from personal bank accounts when the reforms take effect on January 1, 2026.
Oyedele gave the clarification during Channels Television’s end-of-year programme, 2025 In Retrospect: Charting a Pathway to 2026, aired on Tuesday 30th December.
According to him, the reformed tax framework is built strictly on self-declaration, not direct debit or surveillance of individual financial transactions.
He described claims that the government would monitor or deduct money from Nigerians’ bank accounts as unfounded and untrue.
He explained that taxpayers would simply be required to declare their income at the end of the tax year, including those who qualify for tax exemptions.
Oyedele further noted that the reforms are intentionally designed to be simple, transparent, and fair, especially for small business owners, sole proprietors, and individuals earning modest incomes. He stressed that the new system corrects long-standing imbalances that placed a heavier tax burden on vulnerable Nigerians.
Meanwhile, President Bola Ahmed Tinubu has reiterated that the implementation of the new tax laws—both those signed into law on June 26, 2025, and those scheduled to commence in 2026—will proceed as planned.
The President described the reforms as “a once-in-a-generation opportunity” to establish a fair, competitive, and resilient fiscal framework for Nigeria. He clarified that the laws are not designed to increase taxes, but to promote harmonization, protect citizens’ dignity, and strengthen the social contract between the government and the people.
Tinubu also urged stakeholders to support the implementation process, noting that the reform agenda has reached a critical delivery stage with no significant issues warranting disruption.