JUST IN: Bola Tinubu Government Plans Automatic Tax Deductions from Bank Accounts for Unexplained Income!

November 25, 2025 2 Min Read

Reported by Marian Opeyemi Fasesan | Sele Media Africa

The federal government of Nigeria has announced a new tax enforcement initiative that will enable automatic deduction of taxes from bank accounts of individuals with unexplained or undeclared income. The measure is scheduled to take effect in 2026, under reforms led by Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms. [1]

“Instead of relying on people to be patriotic and tell us their income, we want to use the system to find out… If you cannot explain yourself and your tax is N1 million, we can debit your bank account,” Oyedele said. [1]

Key Details

The system will track individual incomes by assessing bank account transactions and comparing them with declared incomes. If someone falls within a taxable bracket but has not paid or has under‑paid, the tax authority may debit the bank account after due process. [2]
The reforms also clarify that clergy and other religious workers will be taxable if their earnings exceed the threshold — churches and mosques remain untaxed only when doing purely charitable work and not earning income as institutions.
Meanwhile, other analyses insist this automatic deduction claim must be understood in context. Certain experts classify the narrative as a misconception: while banks must report large transactions (e.g., cumulative monthly transactions ≥ N25 million for individuals) the notion that every bank account will face automatic tax deduction may be overstated. [3]

Why It Matters

This marks one of the most ambitious tax‑compliance initiatives by the Tinubu administration to widen the tax net and boost revenue in a period of fiscal strain.
The proposal raises substantial questions about financial privacy, due process, the threshold for what constitutes “unexplained income,” and the rights of citizens whose accounts may be affected.
If implemented, it could not only affect high‑income earners, but also informal‑sector participants, digital content creators, small business owners and those with multiple income streams who have not previously declared fully.

What to Watch

Clarifications and regulation from the Federal Inland Revenue Service (FIRS) and Ministry of Finance explaining thresholds, exemptions and appeal rights.

Public reaction:

opposition parties, labour unions, digital creators and civil‑society groups may challenge perceived overreach or lack of safeguards.

Implementation design:

how the system will work, including timelines, data‑integration, safeguards, and correction of accidental debits.

Impact on behaviour:

whether this prompts more accurate income declarations, greater tax‑compliance, or drives some economic activity into informal channels.

Citations:

Peoples Gazette Nigeria: gazettengr.com/tinubu-govt-to-automatically-deduct-taxes-from-bank-accounts-of-nigerians-with-unexplained-income-oyedele/?utm_source=chatgpt.com
Journalist101.com: journalist101.com/2025/11/24/tinubu-govt-to-begin-automatic-tax-deductions-from-nigerians-bank-accounts/?utm_source=chatgpt.com
The Eagle Online: theeagleonline.com.ng/explainer-misconceptions-around-tinubus-income-tax-reforms-by-michael-chibuzo/?utm_source=chatgpt.com