New Tax Law: Government Won’t Automatically Debit Personal Bank Accounts, Oyedele Clarifies

The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has clarified that the Federal Government has no plans to automatically deduct taxes from Nigerians’ personal bank accounts under the ongoing tax reforms.

Speaking on Channels Television’s end-of-year programme 2025 In Retrospect: Charting a Pathway to 2026, Oyedele addressed concerns about the new tax framework, emphasizing that it is based on self-declaration, transparency, and simplicity.

“People think that the government will debit their bank accounts from next year, and how they even came up with that, I have no idea,” Oyedele said. “Nobody will debit your account for any amount you transfer. Whether it’s one billion naira or one thousand naira, at the end of the year, you tell the government yourself.”

He also assured that Nigerians will not need to account for personal transfers into or out of their accounts, countering fears that routine financial transactions could trigger automatic tax checks.

Under the new system, individuals and businesses are responsible for declaring their income accurately. “You know what constitutes your income and what doesn’t. So you tell the government: ‘This is my income and here is the tax,’” Oyedele explained. “If you are exempted, you simply declare: ‘This is my income, and I am exempted from tax.’”

Oyedele said the reforms aim to simplify compliance, encourage voluntary tax payment, and reduce the burden on ordinary Nigerians, particularly small business owners and informal workers who were often disproportionately affected under the previous system.

“One of the biggest benefits is that if you run a small business as a sole proprietor, an enterprise, or you are just hustling, the system will no longer be regressive—taxing the vulnerable more. We’ve made it progressive,” he noted.

The committee is also working to streamline tax processes further, improve public trust, and broaden the tax base without increasing pressure on low-income earners.

His clarification comes amid widespread debate and misinformation about the Federal Government’s tax reforms, with officials urging Nigerians to rely on verified information.