Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has said the Federal Government’s proposed tax reforms will not result in arbitrary debits from Nigerians’ bank accounts.
Dismissing widespread fears surrounding the initiative, Oyedele stated that no tax authority has the capacity or intention to monitor or debit individual bank accounts based on transaction narrations, stressing that Nigeria’s tax system remains largely self-assessment driven.
“Nobody will debit your bank account. Any amount of money you transfer, whether it’s ₦1 billion or ₦1,000, it doesn’t matter how you describe it.” he said.
According to him, the reforms are designed to make taxation more progressive by shifting the burden away from low-income earners and informal micro-businesses, while improving compliance among high-income individuals and businesses.
“There is no taxman in the world that has the capacity to go after everyone,” Oyedele said,
Vast Majority of Nigerians Have Less than N500,000 in Their Accounts
He cited data indicating that the vast majority of Nigerians have minimal bank balances, noting that such individuals are not the primary targets of tax enforcement.
Oyedele argued that opposition to the reforms has been fueled by misinformation, often amplified by wealthy individuals who stand to pay more under the new framework.
He alleged that some high-earning digital content creators and influencers earning thousands of dollars monthly have framed the reforms as a threat to ordinary Nigerians, despite their own exposure to higher taxes.
“There are content creators who admitted they make up to $10,000 a month. They don’t want to pay tax.” He said.
Oyedele maintained that despite public backlash, the reforms are intentionally structured to protect the most vulnerable Nigerians, who are often excluded from policy formulation and lack the platforms to defend policies that benefit them.
Voluntary Declaration of Income to Continue
Under the proposed regime, Oyedele explained, Nigerians will continue to declare their income voluntarily at year-end, distinguishing between taxable and non-taxable inflows, with exemptions clearly stated.
The reform package also includes significant relief for small businesses and informal operators. Oyedele revealed that a presumptive tax regime has been introduced, exempting enterprises with annual turnover of N12 million or less, acknowledging that turnover does not equate to profit.
He added that specific low-income trades such as roadside food vendors and vulcanizers have been explicitly listed for tax exemption, with plans to issue exemption stickers to prevent harassment by tax officials.
In addition, the federal government, working with the Joint Revenue Board, has developed a tax harmonisation framework for states and local governments to curb multiple taxation. Several states, including Zamfara, Anambra and Kano, have reportedly begun implementing the framework, with others expected to follow.
He said the government remains committed to pushing forward with the reforms unless compelling evidence emerges to justify a change in direction.
