The National Orientation Agency (NOA) has dismissed widespread fears that the federal government will begin deducting taxes directly from the bank accounts of Nigerians once the new tax reforms take effect in January 2026.
Naija247news gathered that this clarification came amid growing public concerns and online speculation over the Nigerian Tax Act, 2025 and the Nigerian Tax Administration Act (NTAA). In its recent weekly bulletin, the NOA described the viral claims as false, misleading, and primarily driven by tax evaders and misinformed commentators.
Naija247news understands that Section 29 of the NTAA has been at the centre of these misconceptions. The section, according to the NOA, mandates financial institutions to submit quarterly reports to tax authorities on customers whose total monthly transactions exceed N25 million for individuals and N100 million for companies.
Naija247news reports that this measure is aimed at improving tax compliance and does not authorise automatic deductions from customer accounts. “Insinuations of tax deductions from bank accounts are false,” the agency stated emphatically. “Taxes will not be automatically deducted from the bank accounts of Nigerians.”
According to Naija247news, the NOA further noted that only a small segment of bank users would even fall under the purview of this regulation. “Only about 5 percent of bank customers have more than half a million in their accounts. Hence, more than 90 percent of Nigerians, including the poor and vulnerable, cannot be affected by this provision,” it said.
On the broader intent of the tax reforms, the agency reiterated that the new legislation is not designed to impose additional financial strain on Nigerians. Instead, Naija247news understands that the tax framework aims to support low-income earners and small businesses.
Under the reforms, individuals earning N800,000 or less annually will be completely exempt from personal income tax, while small businesses with turnover below N100 million will pay zero percent profit tax.
Naija247news gathered that the federal government intends these changes to stimulate productivity and reduce the burden on smaller enterprises, while improving compliance among high-income earners.
The NOA concluded that the reforms are “people-friendly, business-friendly, pro-poor” and crafted to bring more eligible taxpayers into the system without penalising the vulnerable population.
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Reporting by Agnes Ekebuike Editor, Naija247news in Lagos, Nigeria.
