The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr. Taiwo Oyedele, has moved to calm public anxiety over Nigeria’s incoming tax regime, assuring Nigerians that the new tax laws taking effect from January 1, 2026, will not permit automatic deductions from personal bank accounts.

Oyedele gave the clarification on Tuesday while speaking on Channels Television’s end-of-year programme, 2025 In Retrospect: Charting a Pathway to 2026, where he dismissed claims that the government intends to monitor or debit individual bank accounts under the new framework.

According to him, the reforms are anchored on a self-declaration model, not direct debits or real-time monitoring of personal transactions.

“There is this belief that the government will start debiting people’s bank accounts from next year. How that idea came about, I honestly don’t know,” Oyedele said. “Nobody will debit your account for any amount you transfer. Whether it’s one thousand naira or one billion naira, at the end of the year, you tell the government yourself.”

He explained that taxpayers would be required to declare their income at the end of the tax year, stressing that the system was deliberately designed to be simple, transparent, and fair, particularly for individuals, small business owners, and low-income earners.

“You know what constitutes your income and what does not. So you tell the government, ‘This is my income and here is the tax.’ If you are exempted, you simply declare that you are exempted. That’s it,” he said, adding that the process is being simplified even further.

Oyedele also highlighted the shift to a progressive tax structure as one of the key outcomes of the reforms, noting that it would end the practice of placing a heavier burden on vulnerable Nigerians.

“If you run a small business, you are a sole proprietor, or you are just hustling to survive, the system will no longer be regressive. We have made it progressive so that those with less are protected,” he stated.

Meanwhile, President Bola Tinubu has reaffirmed the Federal Government’s commitment to implementing the new tax laws as scheduled, including those signed into law on June 26, 2025, and others set to commence on January 1, 2026.

The President previously described the reforms as a “once-in-a-generation opportunity” to build a fair, competitive, and resilient fiscal system for the country. He clarified that the laws are not aimed at increasing taxes but at resetting Nigeria’s tax architecture, harmonising existing frameworks, protecting citizens’ dignity, and strengthening the social contract between government and the people.

Tinubu urged all stakeholders to support the implementation phase, stressing that the reforms have moved beyond policy debates and are now firmly in the delivery stage, with no compelling reason to suspend or reverse the process.

With the clarifications from the government, authorities hope public confidence will improve ahead of the 2026 rollout, as Nigerians adjust to a tax system built on trust, declaration, and fairness rather than enforcement through bank transactions.