The federal government of Nigeria will, starting from 2026, commence direct deductions of taxes from bank accounts of individuals with unexplained income, the chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has revealed.
Speaking on Seun Okinbaloye’s Mic On Podcast, Oyedele explained that the government plans to implement modern taxation systems to monitor citizens’ earnings and ensure those within the tax bracket pay their fair share, especially if they are underreporting or failing to pay taxes.
“Instead of relying solely on voluntary declaration, we want to use the system to identify income. Your primary role is to declare your income, and the government will then perform a fiscal system valuation,” Oyedele said.
He added that if an individual’s tax liability—for example, ₦1 million—remains unpaid and cannot be explained, the government will debit the person’s bank account after giving due process.
“Once due process is observed and the individual refuses to comply, the government can substitute what it has to collect the taxes owed. This allows us to operate professionally and decently without resorting to force or intimidation,” he noted.
Taxation of Religious Workers
Oyedele clarified that individuals working for religious organisations, including churches and mosques, would also be subject to taxation if their income exceeds the taxable threshold.
“It’s income. The church or mosque itself isn’t taxed unless it engages in business activities, but the people they pay—pastors, choirs, or staff—are workers like anyone else,” Oyedele explained.
He emphasized that low-income earners within religious organisations will be exempted from taxes, ensuring the new tax system is neutral to gender, religion, or ethnicity.
“If what you earn is below the threshold, you are exempt—whether you’re an imam, pastor, or otherwise. The moment your income exceeds the threshold, you pay tax. Tax laws apply equally to everyone,” he said.
Oyedele further stated that the system would be progressive: low-income earners pay less, while high-income earners pay more.
The planned reforms mark a significant step in Nigeria’s effort to modernise tax collection and improve compliance, leveraging technology to ensure transparency and fairness in revenue generation.
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