By Stella Onyebuchi, JKNewsMedia Reporter
ASSURANCES OVER personal bank accounts and income declarations have been issued as the Federal Government prepares to roll out sweeping tax reforms from 1 January 2026, following growing public concern over how the changes will be enforced.
Clarifying the scope of the reforms, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr. Taiwo Oyedele, dismissed claims that government agencies would automatically debit personal bank accounts or demand explanations for transfers.
Speaking on Channels Television’s special programme on Tuesday, he said the speculation had no basis.
“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.
“Nobody will debit your account for any amount you transfer. Whether it’s a billion or one thousand naira, at the end of the year, you tell the government yourself,” Oyedele said.
He explained that the new framework places responsibility for income declaration on individuals and business owners, without automatic monitoring of bank transfers.
Oyedele said taxpayers would declare what constitutes their income and calculate the applicable tax themselves.
“You know what constitutes your income and what doesn’t. So you tell the government: ‘This is my income and here is the tax’. If you are exempted, you simply declare: ‘This is my income, and I am exempted from tax’. It is a very simple process that we are simplifying further,” he said.
Oyedele also said the reforms are structured to ensure fairness for small businesses and individuals operating at the lower end of the income scale. He said the system would no longer place a heavier burden on vulnerable earners.
“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 said.
Earlier on Tuesday, President Bola Tinubu confirmed that the implementation of the new tax laws would proceed as scheduled, despite criticisms from political figures, opposition groups, and labour unions. He said the government would not suspend or delay the rollout.
In a statement, the president said the laws were not intended to impose additional taxes on citizens but to reset the country’s fiscal structure, improve coordination, safeguard citizens’ dignity, and strengthen the social contract.
“The new tax laws, including those that took effect on 26 June 2025, and the remaining acts scheduled to commence on 1 January 2026, will continue as planned,” Tinubu said.
He described the reforms as a rare opportunity to overhaul the country’s fiscal framework.
“These reforms are a once in a generation opportunity to build a fair, competitive, and robust fiscal foundation for our country,” he said.
The president also called on Nigerians to support the reforms as they come into force.
The tax reform package was signed into law in June 2025 while the government explained that the measures are designed to simplify Nigeria’s tax system, broaden the tax base, and protect low-income earners and small businesses.
Key provisions include a full personal income tax exemption for individuals earning N800,000 or less adding that higher earners will be subject to progressive tax rates capped at 25%.
Small businesses with turnover under N100million are exempt from company tax, value added tax, and the new development levy. Corporate tax for larger firms will fall from 30% to 25%.
The government said value added tax will remain at 7.5%, with exemptions for essential items. Revenue collection under the new regime will be centralised under the Nigeria Revenue Service.
Addressing concerns raised by sections of the public, the government said ordinary citizens would not be subjected to automatic debits or new forms of taxation saying that exemptions under the reforms cover minimum wage earners, pensions, gifts, remittances, and diaspora Nigerians.
Despite controversy and court challenges surrounding the reforms, the government said the measures are aimed at easing tax burdens, supporting small businesses, and promoting a fairer and more transparent tax system while driving economic growth.
