Lagos, December 13, 2025 – As Nigeria prepares for the implementation of sweeping tax reforms starting January 1, 2026, the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has clarified key provisions amid public concerns over bank account monitoring and potential deductions. Speaking at a media workshop in Lagos on December 12, 2025, Oyedele announced that commercial banks will be required to submit quarterly reports on accounts with turnovers of ₦25 million or more to the Federal Inland Revenue Service (FIRS) and relevant agencies, emphasizing that this measure aims to enhance tax compliance without burdening ordinary citizens.
The policy, part of the newly consolidated tax framework signed into law by President Bola Ahmed Tinubu on June 26, 2025, raises the previous reporting threshold from ₦10 million to ₦25 million per quarter—effectively targeting accounts with nearly ₦100 million in annual turnover. Oyedele explained that this adjustment excludes the vast majority of Nigerians, affecting only high-volume transactions typically associated with business activities.
"This is not about reporting every customer's transactions," Oyedele stated. "The new law has actually raised the threshold, making it less intrusive for most people." He noted that the requirement builds on existing rules from the 2020 Finance Act, which mandates Tax Identification Numbers (TINs) for business accounts. Under the Nigeria Tax Administration Act, banks must now request TINs from all taxable individuals, though exemptions apply to non-earners such as students and dependents.
Addressing rampant misinformation on social media suggesting that banks or government agencies could directly debit accounts for tax defaults, Oyedele was unequivocal: "Nobody will debit your bank accounts. Banks will not debit customers’ accounts for tax default." He labeled such claims "false, dangerous, and capable of destabilizing the economy," warning that panic withdrawals could harm financial stability.
"Let me say this clearly: nobody—not FIRS, not the Central Bank of Nigeria, not any government agency—has the power to debit your bank account," Oyedele reiterated. He explained that tax recovery requires a rigorous legal process, including assessment, notification, opportunity for objection, and a court-ordered garnishee— a mechanism he described as "almost never used." Drawing from his decades in tax administration, Oyedele said he had never witnessed unauthorized deductions and referenced a failed attempt under a previous FIRS chairman to impose post-no-debit freezes, which caused unnecessary alarm without success.
The confusion, according to Oyedele, arises from the consolidation of over 60 fragmented tax laws into four streamlined acts: the Nigeria Tax Act, Nigeria Tax Administration Act, Nigeria Revenue Service Act (rebranding FIRS as the more autonomous Nigeria Revenue Service), and Joint Revenue Board Act. These reforms, effective from January 2026, seek to simplify compliance, broaden the tax base, reduce burdens on low-income earners and small businesses, and foster economic growth.
Key relief measures include exempting individuals earning ₦800,000 or less annually from personal income tax, introducing progressive rates up to 25% for higher earners, and raising the tax-free threshold for severance or injury compensation from ₦10 million to ₦50 million. Small businesses also benefit from exemptions and reduced withholding tax rates. Additionally, a new Tax Ombuds office will provide independent resolution for taxpayer complaints.
Oyedele urged the public to disregard fear-mongering narratives and focus on the reforms' pro-people intent. "These changes will ease the tax load on households, support small enterprises, and create a fairer system," he said, highlighting plans for public education campaigns, including digital explainers in major languages.
The reforms represent Nigeria's most comprehensive tax overhaul in decades, aimed at increasing revenue efficiency without overburdening citizens. As implementation approaches, stakeholders anticipate improved transparency and investor confidence, though continued clarifications will be crucial to counter misinformation.
