Tax Committee Says No Direct Bank Debits With New Tax Laws

Mr. Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, has assured Nigerians that the new tax laws coming into effect on January 1, 2026, will not involve automatic deductions from personal bank accounts. He clarified that the system will be based on self-declaration rather than direct debits.

During a television’s interview, Oyedele addressed concerns about the government monitoring or withdrawing funds from individual accounts, calling such rumors unfounded. Taxpayers will only be required to report their income at the end of the tax year.

The reforms aim to simplify the tax process and make it fairer, especially for small business owners and low-income earners. Oyedele explained that taxpayers will declare their income and pay accordingly or claim exemptions where applicable, removing the regressive nature of the previous system.

President Bola Tinubu has reiterated that the tax reforms are designed to create a more robust fiscal foundation without raising taxes. He encouraged stakeholders to support the implementation phase, which is now underway, ensuring the reforms strengthen Nigeria’s social and economic structures.