FG not targeting bank deposits for taxation, NOA clarifies

…says only 5% have over N500,000

The National Orientation Agency (NOA) has clarified that the federal government will not deduct taxes directly from Nigerians’ bank accounts when the new tax laws take effect in January 2026.

In its latest weekly publication, the agency addressed concerns about the Nigerian Tax Act, 2025 and the Nigerian Tax Administration Act (NTAA), saying the claims of automatic deductions are based on misinterpretation and misinformation.

“Taxes will not be automatically deducted from the bank accounts of Nigerians,” the NOA stated.

According to the agency, Section 29 of the NTAA only requires banks and financial institutions to report quarterly on customers whose cumulative monthly transactions exceed N25 million for individuals and N100 million for companies.

“The provision is intended to help identify potential tax evasion and does not permit the government to withdraw funds from bank accounts,” the agency said.

The NOA added that only about 5 percent of bank customers have more than N500,000 in their accounts, meaning that over 90 percent of Nigerians will not be affected by the reporting requirement.

The agency also said the new tax laws are structured to ease the burden on low-income earners and small businesses. Individuals earning N800,000 or less annually will be exempt from personal income tax, while businesses with annual turnover below N100 million will be exempt from profit tax.

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“These reforms aim to improve tax compliance, reduce evasion, and expand the tax base without increasing the burden on the majority of Nigerians,” the NOA said.

The agency noted that the new laws are expected to bring more eligible taxpayers into the system and improve transparency in financial reporting.