The Chairman of the Ekiti State Internal Revenue Service (EKIRS), Olaniran Olatona, has assured Nigerians that the upcoming Federal Tax Law, scheduled to commence in January 2026, is a strategic move to bolster the national economy and will not result in unauthorised bank deductions or public hardship.
Speaking at a news conference on Wednesday in Ado Ekiti, Olatona clarified that the reforms are part of the President Bola Tinubu-led administration’s goal to modernise Nigeria’s tax architecture, improve transparency, and promote administrative fairness.
He moved to dismiss widespread rumours concerning the safety of personal finances under the new regime.
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He emphasised that the law provides no authority for arbitrary withdrawals from individual accounts.
Olatona stressed that tax authorities cannot withdraw funds from private bank accounts without following strict due process.
He debunked reports that accounts belonging to individuals without a Tax Identification Number (TIN) would be frozen or penalised.
Instead, the reform focuses on regularising and issuing TINs to improve tax compliance and administration.
Far from being a burden, Olatona described the tax reform as a “protective and progressive” system designed to create an enabling environment for both residents and businesses.
The reform is tailored to exempt those at the lower end of the economic ladder, allowing them to grow their wealth until they reach a taxable threshold.
Contrary to fears of inflation, he stated that the reform is expected to lower the cost of food and essential items, easing the cost of living for the average citizen.
The new framework aims to reduce multiple taxation, eliminate revenue leakages, and encourage voluntary compliance through a broader, fairer tax base.
“The tax reform is designed to protect low-income earners, allowing them to grow and develop economically until they reach a level where they become liable to pay taxes”, Olatona.
To ensure a smooth transition and avoid administrative errors, Olatona advised Nigerians to be diligent when conducting financial transactions.
He urged the use of proper and accurate descriptions during bank transfers to prevent unnecessary taxation or misinterpretation by revenue authorities.
The EKIRS is currently conducting a state-wide engagement theme titled “The New Tax Reform Laws: Deepening Stakeholders’ Understanding for Strategic Alignment and Implementation.”
The agency has already met with the Ekiti State Traditional Rulers Council and bank executives.
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Further meetings are scheduled this week with artisans and small business owners, and proprietors of private schools.
Olatona praised the President’s economic stabilisation efforts and urged the people of Ekiti to ignore misinformation and seek clarifications from credible official sources.
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