FG Won’t Deduct Taxes Directly from Bank Accounts — NOA Clarifies
The National Orientation Agency (NOA) has debunked claims that the federal government will automatically deduct taxes from Nigerians’ bank accounts when the new tax reform laws take effect in January 2026.
In its latest weekly publication, the agency described the rumours as false and misleading, saying they were largely being circulated by individuals and businesses that have been evading taxes. It explained that misconceptions arose from the misinterpretation of Section 29 of the Nigerian Tax Administration Act (NTAA), 2025.
According to the NOA, the section only requires banks and financial institutions to provide the tax authorities with quarterly reports on customers whose cumulative monthly transactions exceed ₦25 million for individuals or ₦100 million for corporate entities. The agency stressed that this provision is strictly for information-sharing and does not authorise automatic tax deductions from bank accounts. It added that more than 90 percent of Nigerians would not be affected, as only about five percent of account holders have balances exceeding ₦500,000.
The NOA further clarified that the new tax laws — the Nigerian Tax Act, 2025 and the Nigerian Tax Administration Act — are designed to ease the tax burden on low-income earners and small businesses rather than increase it. Under the new framework, individuals earning ₦800,000 or less annually will be exempted from personal income tax, while small businesses with an annual turnover of ₦100 million or less will pay zero percent profit tax.
The agency said the reforms aim to promote fairness, boost productivity, and enhance compliance among high-income earners, ensuring that only eligible taxpayers contribute their fair share while protecting the poor and vulnerable from excessive taxation.
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