No automatic bank debits in 2026 tax reform, says Oyedele
Mr. Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, has assured Nigerians that the new tax laws set to take effect from January 1, 2026, will not include automatic deductions from personal bank accounts. He clarified that the reforms operate on a self-declaration basis rather than direct debits.
Speaking during Channels Television’s year-end programme 2025 In Retrospect: Charting a Pathway to 2026 on Tuesday, Oyedele dispelled rumors that the government would monitor or debit individual bank accounts. He emphasized that taxpayers will simply declare their income at the close of the tax year.
“People think the government will debit their accounts starting next year, but that’s not the case. Nobody will debit your account for any amount you transfer. Whether it’s a billion or one thousand naira, you will report your income yourself at year-end,” Oyedele explained.
He further described the reforms as straightforward, transparent, and fair—especially benefiting small business owners and individuals with modest incomes.
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“You know what your income is and what it isn’t. You just tell the government: ‘This is my income and here is my tax.’ If you are exempt, you declare that you’re exempted. It’s a simple process we are further simplifying,” he said. “The new system will be progressive rather than regressive, reducing the burden on vulnerable earners.”
President Bola Tinubu had earlier reaffirmed that the new tax laws, including those enacted mid-2025 and set to start in January 2026, will proceed as planned. He described the reforms as a “once-in-a-generation opportunity” to create a fair, competitive, and strong fiscal foundation—aimed at harmonization, protecting dignity, and strengthening the social contract without raising tax rates.
Tinubu called on all stakeholders to support the implementation phase, which he said is well underway, noting no major issues have arisen to delay the reforms.
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