Recent weeks have seen a significant rise in anxiety among Nigerians regarding new tax laws, particularly concerning bank transfer narrations and fears of automatic tax deductions from personal accounts. Many individuals have been double-checking their transaction descriptions, prompted by widespread online conversations and speculation about increased tax surveillance.

However, these fears have been explicitly dismissed as unfounded by Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms. In a recent interview on Channels Television, Oyedele categorically stated that Nigerians' bank accounts remain secure, irrespective of whether transfer narrations are included. He firmly rejected claims that tax authorities actively monitor bank transfers or utilize transaction descriptions to impose taxes, labeling such reports as baseless misinformation.

Oyedele emphasized that Nigeria lacks any system designed for automatic tax deductions directly from personal bank accounts. He further clarified that tax authorities do not track individual transfers for the purpose of taxation. He explained that due to limited operational capacity, governments strategically focus their efforts on revenue streams that promise the highest yield, rather than expending resources on tracking every single citizen's transaction. As he put it, "With limited capacity, you go after the highest yield. Where can I get one billionaire or ₦100 million?"

He also highlighted crucial data indicating that the majority of Nigerians do not fall within the income brackets targeted by the current reforms. According to Oyedele, approximately 98 percent of bank account holders in Nigeria maintain balances below ₦500,000, yet a significant portion of the public expressing concern belongs to this group. Oyedele suggested that some of this panic is deliberately fueled by high-income earners who are reluctant to fulfill their tax obligations. He alleged that certain affluent individuals and influential content creators, some earning as much as $10,000 monthly, are actively promoting fear online as a tactic to resist the implementation of these reforms. "They won’t say they don’t want to pay tax. Instead, they say the government will debit your ₦5,000 so you can help them fight the reform," he commented.

Addressing the specific concern about transfer narrations, Oyedele was unequivocal: neither the amount of a transfer (whether ₦1,000 or ₦1 billion) nor any accompanying description will trigger taxation or result in deductions. He reiterated that Nigeria operates under a self-declaration tax system. Under this system, individuals are responsible for declaring their annual income and assessing their own tax liabilities. "You know what is your income and what is not. You tell the government, this is my income, and this is the tax," he explained. He also added that even individuals who are legally exempt from paying taxes are still required to file returns, explicitly stating their exemption. He noted that the ongoing reforms are primarily aimed at streamlining and simplifying this self-declaration process, making it more accessible for all citizens.

In conclusion, Oyedele affirmed that the overarching objective of these tax reforms is to safeguard vulnerable Nigerians while simultaneously fostering the development of a more equitable and progressive tax system for the nation.