The Federal Government has assured Nigerians that the newly introduced tax laws will not involve monitoring bank transfer narrations or automatically debiting personal bank accounts.
Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, gave the assurance on Tuesday during an end-of-year programme on Channels Television, amid growing public concern over the scope of the reforms.
Oyedele said the government lacks both the intention and capacity to track individual bank transfers for tax purposes, stressing that the reformed system is anchored on voluntary compliance and self-declaration.
“There is no tax authority anywhere in the world that has the capacity to go after everyone,” he said.
Clarifying widespread misconceptions, Oyedele explained that the description attached to bank transfers—regardless of the amount—has no bearing on taxation.
“Whether you transfer ₦5,000 or ₦1 billion, and whatever you write as the narration, nobody will debit your account,” he said. “At the end of the year, you tell the government yourself what your income is.”
According to him, taxpayers are expected to distinguish between taxable income and non-taxable receipts when filing their returns.
“You know what is your income and what is not. If you are exempt, you simply declare it and you pay nothing,” Oyedele added.
He attributed much of the resistance to the reforms to misinformation, particularly by high-earning individuals who stand to be affected by the new framework.
“Some content creators openly admit earning up to $10,000 monthly, yet they don’t want to pay tax,” he said. “So instead, they spread the narrative that government wants to debit people’s bank accounts, to stir public outrage.”
Oyedele also highlighted benefits for small businesses, describing the reforms as a relief for sole proprietors burdened by multiple levies under the existing tax structure.
“If you run a small business, this reform is one of the biggest benefits you can get,” he said. “Many small operators are currently subjected to numerous overlapping taxes and levies. This reform simplifies that.”
He concluded that the tax changes are designed to protect low-income earners, ease compliance for small businesses, and build a fairer, more progressive tax system.