The National Orientation Agency (NOA) has dispelled widespread fears that the federal government will directly deduct taxes from Nigerians’ bank accounts when new tax laws take effect in January 2026. In its latest weekly briefing, the agency addressed misconceptions surrounding the Nigerian Tax Act, 2025, and the Nigerian Tax Administration Act (NTAA), emphasizing that claims of automatic deductions are unfounded and stem from misinformation.
“Taxes will not be automatically deducted from the bank accounts of Nigerians,” the NOA stated unequivocally, seeking to reassure the public amid growing anxiety.
Clarifying the provisions of the NTAA, the agency explained that Section 29 mandates banks and financial institutions to submit quarterly reports on customers whose cumulative monthly transactions exceed N25 million for individuals and N100 million for corporate entities. This measure aims solely to detect potential tax evasion and does not authorize any direct withdrawal of funds by the government.
“The reporting requirement is a tool for monitoring and ensuring tax compliance, not a mechanism for automatic deductions,” the NOA added.
Highlighting the limited impact of this provision, the agency noted that only about five percent of bank customers maintain balances exceeding N500,000. Consequently, over 90 percent of Nigerians are unlikely to be affected by the reporting mandate.
The NOA also underscored that the new tax reforms are designed to alleviate financial pressure on low-income earners and small businesses. Individuals with annual incomes of N800,000 or less will be exempt from personal income tax, while businesses generating annual turnovers below N100 million will be relieved from profit tax obligations.
“These reforms seek to broaden the tax base, enhance compliance, and reduce evasion without imposing additional burdens on the majority of Nigerians,” the agency stated.
Furthermore, the agency anticipates that the revised laws will increase transparency in financial reporting and bring more eligible taxpayers into the formal tax system, strengthening Nigeria’s fiscal foundation.
As the January 2026 implementation date approaches, the NOA’s clarifications aim to build public confidence in the government’s commitment to fair and transparent taxation.
