The Federal Government has reassured Nigerians that the new tax laws taking effect on January 1, 2026, will not involve automatic deductions from personal bank accounts.
Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, made this clear during an interview on Channels Television’s year-end programme, 2025 In Retrospect: Charting a Pathway to 2026.
According to Oyedele, the new tax structure is based on self-declaration of income, not surveillance of bank transactions or forced deductions.
“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,” he said.
How the New System Works – Self-Declaration, Not Surveillance
Explaining further, Oyedele noted that Nigerians will be required to declare their income at the end of the tax year, including what part of their earnings is taxable.
“You know what constitutes your income and what doesn’t. So you tell the government: ‘This is my income and here is the tax,’” he said.
He added that those who qualify for tax exemptions will also be able to declare accordingly.
“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.”
Oyedele stressed that the reforms are designed to make the system fair, transparent and progressive, especially to protect small business owners and Nigerians with modest incomes.
“We’ve made it progressive. The vulnerable will no longer be taxed more while the wealthy pay less,” he explained.
Tinubu: Tax Reform Is a Structural Reset, Not Increased Tax Burden
President Bola Tinubu reaffirmed that the tax reforms — including laws enacted on June 26, 2025, and those taking effect from January 1, 2026 — will proceed as scheduled.
He described the reforms as:
“A once-in-a-generation opportunity to build a fair, competitive, and robust fiscal foundation for Nigeria.”
Tinubu noted that the new system is not aimed at increasing taxes, but at harmonizing tax processes, protecting the dignity of citizens, and improving trust between government and the people.
He urged Nigerians and stakeholders to support the implementation phase, saying the initiative is now firmly in the delivery stage.
More updates on the 2026 tax system will follow as implementation progresses.