No Automatic Bank Deductions Under Nigeria’s New Tax Laws, Reform Chief Assures Citizens
Nigeria’s Federal Government has dismissed widespread fears that personal bank accounts will be automatically debited under the Country’s newly enacted tax laws, assuring citizens that the reforms are built on transparency, self-assessment and due process.
The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr. Taiwo Oyedele, gave the clarification amid growing public anxiety and social media speculation ahead of the implementation of the new tax framework scheduled to commence in January 2026.
Speaking during a public policy review programme, Oyedele stressed that no provision in the new tax laws authorises the Government or any tax authority to directly or automatically deduct money from individuals’ bank accounts.
He described claims to the contrary as misinformation that has needlessly alarmed the public.
According to him, the reformed tax system operates on a self-declaration model, where individuals and businesses are expected to honestly declare their income at the end of the tax year and pay the appropriate taxes based on existing laws.
Enforcement mechanisms, he added, remain subject to legal procedures and safeguards, not arbitrary deductions.
Oyedele noted that even in advanced economies, tax authorities do not monitor or deduct funds from every bank transaction carried out by citizens.
“There is no Country in the world where the Government automatically debits people’s bank accounts simply because money entered their accounts,” he said, emphasising that Nigeria’s reforms align with global best practices.
The clarification comes as Nigeria prepares to roll out a sweeping overhaul of its fiscal and tax structure, aimed at broadening the tax base, reducing the burden on low-income earners, eliminating multiple taxation, and improving revenue efficiency.
The reforms have, however, faced criticism from opposition figures, labour groups and sections of civil society, some of whom have called for delays and wider consultations.
Despite the pushback, President Bola Ahmed Tinubu’s administration has maintained that the reforms are critical to stabilising the economy and funding essential public services.
Oyedele urged Nigerians to seek information from credible and official sources, warning that misinformation could undermine public confidence in necessary economic reforms.
As implementation approaches, authorities say sustained public engagement will remain central to ensuring clarity, trust and compliance under the new tax regime.
