No Automatic Bank Deductions Under New Tax Laws – Oyedele

The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr Taiwo Oyedele, has assured Nigerians that the new tax laws will not allow automatic deductions from personal bank accounts.

Oyedele said the reforms, scheduled to take effect on January 1, 2026, rely strictly on self-declaration. He stressed that the government will not monitor or debit individual bank transactions.

He gave the assurance during Channels Television’s end-of-year programme, 2025 In Retrospect: Charting a Pathway to 2026, aired on Tuesday.

Government Will Not Monitor Bank Transfers

Oyedele dismissed widespread claims that the government plans to debit citizens’ accounts directly. He said such reports are false and misleading.

“People think the government will debit their bank accounts from next year. I honestly do not know where that idea came from,” he said.

According to him, the amount transferred through a bank account is irrelevant. Taxpayers will only declare their income at the end of the tax year.

“Whether it is one thousand naira or one billion naira, nobody will debit your account. At the end of the year, you tell the government yourself,” he added.

Simpler and Fairer Tax Framework

Oyedele explained that the reform framework is designed to be simple, transparent, and fair. He said the system especially protects small business owners and low-income earners.

Taxpayers, he noted, understand what qualifies as income and what does not. Those exempt from tax will only need to declare their income and state their exemption status.

“If you are exempted, you simply declare your income and say you are exempted. The process is straightforward, and we are simplifying it further,” he said.

Relief for Small Businesses and Hustlers

Oyedele said one major benefit of the reforms is the shift away from a regressive tax structure. He noted that the old system placed a heavier burden on vulnerable Nigerians.

Under the new framework, sole proprietors, small enterprises, and informal workers will face a more progressive tax system.

“The system will no longer tax the vulnerable more. We have deliberately made it progressive,” he said.

Tinubu Backs January 1 Implementation

Meanwhile, President Bola Tinubu has reaffirmed that the new tax laws will take effect as scheduled. The reforms include laws enacted on June 26, 2025, and others commencing on January 1, 2026.

Tinubu described the reforms as a once-in-a-generation opportunity to rebuild Nigeria’s fiscal framework. He said the laws are not designed to raise taxes but to reset the system.

According to the President, the reforms will promote harmonisation, protect citizens’ dignity, and strengthen the social contract.

He urged stakeholders to support the implementation phase, noting that the process has entered full delivery mode. Tinubu added that no major issue exists to justify delaying the reforms.