Nigeria’s tax reform chief Taiwo Oyedele assures citizens their bank accounts won’t face automatic deductions, as new system relies on self-declaration and shields small businesses from taxation.
Taiwo Oyedele, who chairs the Presidential Fiscal Policy and Tax Reforms Committee, has assured Nigerians that the country’s incoming tax legislation will not permit authorities to withdraw funds directly from citizens’ bank accounts, explaining that the system will instead operate on self-reported income declarations.
Speaking in a television interview excerpt posted to his X account on Wednesday, Oyedele outlined the mechanics of the proposed tax framework, identified who must pay, and detailed protections built in for small enterprises and economically vulnerable citizens.
“Your account remains untouched—whether you transfer one billion naira or one thousand, regardless of the transaction description, no deductions will occur,” Oyedele stated. “When the year ends, you simply inform the government yourself. You understand which amounts constitute income and which don’t. You declare your earnings and remit the corresponding tax.”
He noted that those qualifying for exemptions face no payment obligations, adding, “Exempted individuals simply declare their income and confirm their exempt status. We’ve designed this to be straightforward and are making it even simpler.”
The reforms deliver substantial relief to small-scale operators, including informal traders and individual entrepreneurs, Oyedele emphasized, explaining that the committee created safeguards for those with modest earning potential.
“For small business owners, this represents one of the reform’s greatest advantages—whether you operate as a sole proprietor, run an enterprise, or simply hustle without a formal business name,” he explained.
The new framework introduces a presumptive tax system for low-revenue businesses, he said. “Businesses generating 12 million naira annually or less are considered unable to pay tax, since that figure doesn’t reflect disposable income.”
Oyedele said the committee explicitly identified specific low-income business categories to prevent arbitrary taxation by officials. “We went further by listing businesses with limited earning capacity—tire repairers, roadside corn vendors… some operations where working around the clock still leaves you struggling financially,” he noted.
To shield such operators, he announced plans for tax exemption identification markers, saying “we’re introducing tax exemption stickers so these business owners won’t be disturbed.”
Regarding state and local tax administration, Oyedele explained the committee operated within constitutional boundaries to encourage consistency, noting that “constitutional provisions prevent federal dictation to state and local governments, so we drafted a tax harmonization law for subnational entities.”
Several states have begun implementing the framework, he revealed. “Ekiti initiated the process, followed by Zamfara, Anambra, and Kano… Lagos has committed to adoption as well.”
Oyedele maintained the reforms prioritize vulnerable Nigerians typically excluded from policy discussions. “This reform centers the most vulnerable because they’re rarely represented when policies are crafted,” he said, acknowledging that despite limited advocacy from such groups, the government believes “moving forward is appropriate unless compelling reasons emerge otherwise.”
His statements arrive amid intense public discussion surrounding Nigeria’s revised tax laws, which federal authorities say become fully operational on January 1, 2026. President Bola Ahmed Tinubu has affirmed the reforms will launch as planned, characterizing them as a “once-in-a-generation opportunity” to restructure Nigeria’s fiscal system and advance fairness and coordination.
The Presidency maintains the reforms aim not to raise taxes but to streamline the system, safeguard low-income citizens, and rebuild trust between government and the public, with commitments to address legitimate concerns emerging during rollout.
READ ALSO:
- Real Madrid Academy Staff Detained After Fire Outbreak in Rivers State
- Seyi Makinde Mourns Guards Killed by Bandits
- Nollywood Actress Biodun Okeowo, Calls Out Colleagues Over Lack of Support
- Wema Bank Upgrades ALAT Digital Platform
- Burkina Faso foils Fresh plot to assassinate Capt Ibrahim Traoré
