The Ekiti State Internal Revenue Service (EKIRS) on Wednesday debunked rumours suggesting that Nigerians without a Tax Identification Number (TIN) would be penalised or have their accounts frozen under the new tax reform, which is due to commence on 1 January 2026.
The Chairman of the EKIRS, Olaniran Olatona, stated this while addressing journalists on Wednesday in Ado-Ekiti, the state capital.
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The Fidelity Bank Plc had on Monday announced that it would begin restricting transactions on accounts that are not linked to a Tax Identification Number (TIN) or National Identity Number (NIN) from 1 January 2026.
The bank disclosed this in a notification sent to customers, citing provisions of the Nigerian Tax Administration Act (NTAA) 2025.
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According to the message, the act mandates that all bank accounts must be linked to a TIN, while customers without one must link their NIN.
However, Mr Olatona said that the implementation of tax reform laws would not result in unauthorised deductions from individual bank accounts or cause undue hardship for the citizens.
He said the tax reform is part of President Bola Ahmed Tinubu-led Federal Government’s efforts to modernise the tax system, improve revenue generation and promote fairness in tax administration across the country.
Mr Olatona allayed fears among members of the public that the new tax law would lead to arbitrary deductions from personal bank accounts, stressing that the law does not grant tax authorities the power to withdraw funds from individuals’ accounts without due process.
He said, ” There has been an influx of people in our office. They are saying that if I don’t have a tax ID, come January 1, I would not be able to transact on my bank accounts. And so, with that influx of people, even before coming here, I was on a radio program, and I saw quite a number of old people running around to come and say, I don’t want my bank account to be frozen.
“I want us to realise that this is a fallacy. No bank account will be frozen due to the non-availability of a TIN.
“There is a general fear around taxation, but the reality is that expanding the tax net does not automatically mean an increase in the tax burden.
“When more people are properly captured in the system and data intelligence is effectively used, individuals and businesses will simply pay what is fair and due—no more, no less.
He explained that the reform is designed to broaden the tax base, encourage voluntary compliance, reduce multiple taxes, reduce revenue leakages, while also creating an enabling environment for businesses to thrive and contribute meaningfully to economic development.
He further clarified that the tax reform does not mean an increase in taxes for Nigerians, but rather that it is designed to protect low-income earners, allowing them to grow and develop economically until they reach a level where they can afford to pay taxes, ensuring a fair and progressive taxation system.
“Our goal is not to stifle growth. On the contrary, we want to allow businesses to breathe and grow organically. As businesses expand and mature, they naturally reach a stage where they can be fairly taxed. In this way, it is the fruit that is taxed, not the seed that is destroyed. This approach encourages growth, strengthens the market, and ultimately benefits everyone,” he said.
Caution against price increment
Cautioning the public against unnecessary increment in prices of goods and services due to the new tax reform, Mr Olatona stated that the reform is expected to help reduce the cost of food and essential items, making life easier and more affordable for citizens across the country.
He added, “As we always say, pay your taxes and you will have the moral authority to demand accountability from your government.
“We have a responsible and people-focused administration in Ekiti State under the leadership of Governor Biodun Oyebanji, and the visible impact of revenue utilisation across the state should reassure everyone that funds are being put to good use.
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“It is therefore only right and just to expect every son and daughter of the state to cooperate with us in fulfilling this civic responsibility,” he said.
The EKIRS chairman urged residents to disregard misinformation surrounding the new tax laws, assuring people that the service would continue to educate taxpayers on the provisions and benefits of the reform to ensure smooth implementation.
