The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has clarified that Nigeria’s new tax laws will not permit any government agency to debit citizens’ bank accounts.
He said taxpayers will instead declare their income themselves and pay tax based on what they report.
Oyedele made the clarification in a television interview clip shared on his X account on Wednesday.
He explained that it does not matter how much money passes through a person’s bank account, as transfers alone will not attract automatic tax deductions.
“Nobody will debit your account. At the end of the year, you tell the government yourself what your income is and what is not your income, and then you pay the tax.”
He added that people who are legally exempt from tax do not need to make payments.
According to him, such individuals only need to declare their income and state their exemption status, noting that the process is being simplified further.
Relief for small businesses and low earnners
Oyedele said the tax reforms are designed to protect small businesses, informal operators, and low-income Nigerians.
He explained that sole proprietors and people running very small businesses will benefit from a presumptive tax regime.
Under this system, businesses with an annual turnover of N12m or less will not be required to pay tax because they lack the financial capacity.
He said the committee also identified certain low-earning trades, such as roadside vendors and vulcanizers, to prevent harassment by tax officials.
To protect such operators, Oyedele disclosed plans to introduce tax exemption stickers so that exempt businesses will not be disturbed.
On tax administration at the state and local government levels, he said the committee respected constitutional limits and drafted a tax harmonisation framework to encourage uniformity.
He revealed that states such as Ekiti, Zamfara, Anambra, and Kano have begun adopting the framework, while Lagos has also indicated interest.
Oyedele said the reforms are focused on protecting vulnerable Nigerians who are often excluded from policy discussions.
His comments come amid public debate over the new tax laws, which the Federal Government says will take effect from January 1, 2026.
President Bola Ahmed Tinubu has maintained that the reforms will simplify the tax system, protect low-income earners, and improve trust between citizens and government.
