Commercial banks will be required to file quarterly reports on bank accounts with turnovers of N25 million and above to the Federal Inland Revenue Service (FIRS) and other relevant agencies under the federal government’s new tax administration framework, which takes effect on January 1, 2026.
The disclosure was made in Lagos by Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, during a media workshop on the newly consolidated tax law. He explained that the reporting threshold has been raised from N10 million to N25 million per quarter — equivalent to nearly N100 million annually before any reporting obligation is triggered.
Oyedele clarified that the policy does not require banks to report all customer transactions. He noted that since the 2020 Finance Act, business-related accounts are already mandated to carry a Tax Identification Number (TIN), stressing that only accounts that meet the specified turnover threshold will be flagged for tax monitoring to ensure compliance.
He further stated that banks are now required to request TINs from all taxable Nigerians under the new tax regime. Citing Section 4 of the Nigerian Tax Administration Act, Oyedele said possession of a tax ID is compulsory for all taxable individuals, while students and dependents are exempt and may operate bank accounts without a TIN.
Addressing public concerns, Oyedele dismissed claims that banks would directly debit customers’ accounts for tax defaults, describing such reports as false and misleading. “Banks will not debit customers’ accounts for tax default,” he said, adding that no government agency — including FIRS or the Central Bank of Nigeria — has the authority to remove funds from bank accounts without due process.
He explained that unpaid taxes can only be recovered through a court-ordered garnishee process, which involves assessment, notification, opportunity for objection and a judge’s approval. Without this judicial order, he stressed, no funds can be touched.
Oyedele attributed the confusion to the consolidation of multiple tax laws into a single code, which some people misinterpreted as granting new enforcement powers. Drawing on nearly three decades of experience, he said he had never witnessed funds being withdrawn from a bank account without a court order, noting that similar attempts in the past failed and caused unnecessary panic.
He warned that misinformation could lead to panic withdrawals with damaging effects on the economy and urged the public to help counter false narratives.
According to Oyedele, the tax reforms are designed to simplify compliance, broaden the tax base and reduce the burden on households and small businesses. The Tax Reform Bills were signed into law on June 26, 2025, by President Bola Tinubu.
The new framework comprises the Nigeria Tax Act, Nigeria Tax Administration Act, Nigeria Revenue Service Act and Joint Revenue Board Act, collectively overhauling the country’s tax system to enhance revenue generation, improve the business climate and strengthen tax administration nationwide.
Key measures include exempting individuals earning N800,000 or less annually from income tax, introducing progressive tax rates of up to 25 percent for higher-income earners, raising the tax-free compensation threshold for job loss or injury from N10 million to N50 million, and establishing a Tax Ombuds office to independently handle taxpayers’ complaints.
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