The Federal Government has assured Nigerians that the proposed tax reforms will not involve the monitoring or debiting of personal bank accounts based on transfer narrations.
Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, gave the assurance during a year-end special on Channels Television on Tuesday. He sought to dispel growing concerns that the tax man would track how citizens describe their bank transfers.
“There is no tax authority in the world that has the capacity to go after everyone,” Oyedele stated.
Addressing the anxiety surrounding bank transactions, Oyedele explained that ordinary bank users should not fear how they label their transfers.
“Any amount of money you transfer—whether it is ₦1 billion or ₦1,000—it doesn’t matter how you describe it. Nobody will debit your bank account based on that narration. At the end of the year, you tell the government yourself,” he said.
He emphasized that the reformed tax system is built on the principle of self-declaration rather than invasive monitoring.
“You know what constitutes your income and what does not. You tell the government: ‘This is my income, and here is the tax.’ If you are exempted, you simply state your income and note your exemption. You don’t need to pay anything,” he added.
Oyedele noted that much of the opposition to the reforms stems from misinformation, often fueled by high earners who fall within the taxable bracket. He specifically pointed to some digital content creators as sources of the narrative.
“There are content creators who admitted they make up to $10,000 a month but do not want to pay tax,” Oyedele said. “They won’t create content saying they are avoiding tax on $10,000. Instead, they tell the public that the government will debit your bank accounts for even a ₦5,000 transfer so that you can help them fight the reform.”
The Chairman highlighted that the reforms are specifically designed to protect small-scale entrepreneurs and low-income earners from the current “multitude of levies.”
“If you run a small business as a sole proprietor or an enterprise—even if the business isn’t formally named—this reform is for you. Today, there are all manner of levies and taxes. We are moving to simplify this,” he said.
Oyedele concluded that the ultimate goal of the reforms is to create a progressive system that simplifies reporting, protects the vulnerable, and ensures that those with the highest incomes contribute their fair share.
