The Federal Government has addressed growing public concern over claims that Nigerians could face automatic deductions from their personal bank accounts based on transaction narrations.

The clarification follows widespread rumours suggesting that under the new tax reforms, bank transfers with certain descriptions could trigger direct debits by government agencies. According to the government, these claims are false and misleading.

Banking Transaction Narration: FG Clarifies Debits on Personal Bank Accounts

FG: No Automatic Debit of Personal Accounts

The government stated clearly that no Nigerian’s bank account will be debited automatically based on transaction narration, amount transferred, or frequency of transfers.

Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, explained that the new tax framework does not give any authority the power to monitor personal transfer descriptions or withdraw funds directly from individual accounts.

He stressed that whether a transfer is labelled as “gift,” “support,” “business,” or any other description, it does not give the government access to debit an account.

How the Confusion Started

The misunderstanding arose from discussions around the tax reforms scheduled to take effect from January 2026. These reforms aim to improve tax compliance and harmonise Nigeria’s tax system, especially by:

Encouraging self-declaration of income
Linking Tax Identification Numbers (TINs) to financial records
Strengthening data coordination between tax authorities and financial institutions

Some social media users wrongly interpreted these measures as a plan to monitor transfer narrations and deduct taxes directly from bank accounts.

The government has now clarified that this interpretation is incorrect.

What the New Tax Reforms Actually Focus On

According to officials, the reforms are built around transparency and voluntary compliance, not automatic enforcement. Key points include:

Individuals and businesses are expected to declare their income annually
Taxes are assessed through established tax processes, not bank transfers
Enforcement is targeted mainly at structured businesses and high-income earners
Personal savings and private transfers are not subject to narration-based deductions

Authorities emphasised that Nigeria’s tax laws do not allow the government to withdraw funds from personal accounts without due process.

What This Means for Nigerians

For everyday bank users, the clarification means:

You will not lose money because of how you describe a bank transfer
Personal transfers between family, friends, or associates remain unaffected
There will be no surprise deductions from savings or salary accounts
Good record-keeping is advised, but not because of automatic debits

Nigerians are encouraged to rely on official government statements and credible news sources rather than social media speculation.

Final Note

The Federal Government has reassured the public that transaction narrations will not be used to debit personal bank accounts under the new tax regime. The focus remains on improving voluntary tax compliance through proper reporting and established legal processes.

As with any major policy change, citizens are advised to stay informed and seek professional guidance when necessary, rather than reacting to unverified claims.

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