Tax Chief Reassures Nigerians: Bank Savings Are Safe, Only Earnings Will Be Taxed

The Executive Chairman of the Nigeria Revenue Service (NRS), Dr. Zacch Adedeji, has provided key clarifications to address public concerns over the new tax laws, reassuring citizens that bank savings are not subject to taxation.

During a television interview, Adedeji stated, “Whether under the old law or the new one, your personal bank account is not subject to tax. We tax returns, not the money you already have.” He emphasized that taxation applies only to profits and earnings, not personal assets or account balances.

He directly dismissed widespread rumors, clarifying that everyday personal activities like transferring money to family or friends, account-to-account movements, and simple savings are not taxable events. The consolidation of various earmarked taxes into a single development levy is not a new tax but a simplification measure, he explained.

Adedeji also reassured low-income earners that essential items like food and transport remain tax-exempt and that January salary payments would reflect reduced deductions. Regarding new areas like cryptocurrency, he reaffirmed that only profits from digital assets are taxable, not the principal investment. He concluded by warning that while withholding taxes are prepayments, strict consequences await businesses that fail to comply with the new regulations.