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 reassured Nigerians that the new tax laws set to take effect from January 1, 2026, will not permit automatic deductions from personal bank accounts.

Speaking during Channels Television’s end-of-year programme, 2025 In Retrospect: Charting a Pathway to 2026, Oyedele explained that the reforms are built on a self-declaration system, not direct debits or account monitoring.

He dismissed widespread claims that government agencies would track or withdraw funds from individuals’ bank accounts, stressing that taxpayers will only be required to declare their income at the end of the tax year.

According to him, the framework is designed to be simple, transparent and fair, particularly for small business owners and low-income earners. He noted that individuals would declare their income and applicable tax themselves, while those exempt from tax would also make a declaration confirming their status.

Oyedele added that the reforms would make the tax system more progressive, ensuring vulnerable individuals and small-scale entrepreneurs are no longer disproportionately taxed.

Meanwhile, President Bola Tinubu has reiterated that the implementation of the new tax laws, including those enacted in June 2025 and others scheduled for January 2026, will proceed as planned. The President described the reforms as a historic opportunity to create a fair, competitive and resilient fiscal system, emphasising that the laws are meant to strengthen the social contract rather than increase taxes.

Tinubu also called on stakeholders to support the implementation phase, noting that the reform process has reached a critical delivery stage with no major issues identified to warrant delays.