The Executive Chairman of the Nigeria Revenue Service (NRS), Dr. Zacch Adedeji, on Tuesday reassured Nigerians that neither the old nor the new tax laws allow authorities to tax funds sitting in personal bank accounts.
Speaking on Journalists’ Hangout aired on TVC, Adedeji emphasized that taxation applies only to profits, not assets. “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 explained.
Adedeji dismissed circulating rumours suggesting that transfers, account narrations, or savings could automatically trigger deductions, calling them miscommunications. Personal transactions, gifts, and intra-account movements are not taxable, he added. “If you transfer money to a friend or family member, it’s a private transaction with no tax implication,” he said.
He also clarified that the consolidation of multiple earmarked taxes into a single development levy does not constitute a new tax. The measure, he said, is intended to simplify compliance while supporting spending on education, security, and other development priorities.
The NRS boss reassured low-income earners that essential items like food and transport remain exempt from transactional taxes, promising that January salary payments would reflect reduced deductions. He also emphasized that withholding taxes are prepaid and that non-compliance could carry strict consequences for businesses. On digital assets, he reaffirmed that only profits, not capital, are taxable.