Dare Babalola
The Chairman of the Ekiti State Internal Revenue Service (EKIRS), Olaniran Olatona, has given assurances that the new Federal Tax Laws, scheduled to take effect in January 2026, are crafted to strengthen Nigeria’s economy. He emphasized that the reforms will not lead to unauthorised deductions from individuals’ bank accounts or impose additional financial burdens on citizens.
Addressing journalists in Ado-Ekiti, the Ekiti State capital, on Wednesday, Olaniran Olatona explained that the tax reforms are part of the federal government’s wider initiative under President Bola Tinubu to modernize Nigeria’s tax system.
The goal, he noted, is to enhance revenue generation while promoting fairness and transparency in tax administration nationwide.
The EKIRS Chairman, Olaniran Olatona, addressed public concerns that the new tax laws would allow authorities to make arbitrary deductions from bank accounts, emphasizing that the reforms do not grant any agency the power to withdraw funds without following proper legal procedures.
New tax laws will benefit poor, low income earners, small businesses — Tinubu
According to him, the reforms are aimed at broadening the tax base, encouraging voluntary compliance, reducing multiple taxation, blocking revenue leakages, and creating an enabling environment for businesses to thrive and contribute meaningfully to economic development.
Olatona further clarified that the new tax laws do not translate to an increase in taxes for Nigerians. Rather, he said the reforms are structured to protect low-income earners, allowing them to grow economically until they reach a level where they become liable to pay taxes, in line with the principles of fairness and progressive taxation.
He said, “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.
“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.”
The EKIRS boss also debunked rumours suggesting that Nigerians without a Tax Identification Number (TIN) would be penalised or have their bank accounts frozen under the new tax regime.
He clarified that the reforms are largely focused on regularising tax records and issuing TINs to enhance efficiency in tax administration and improve compliance, rather than targeting or punishing individuals who are yet to obtain one.
Olatona cautioned against arbitrary increases in the prices of goods and services under the guise of the new tax laws, noting that the reforms are expected to help reduce the cost of food and other essential items, thereby making life more affordable for Nigerians.
“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 public funds are being put to good use.
“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.
He urged residents to disregard misinformation surrounding the new tax laws, assuring that EKIRS would continue to sensitise taxpayers on the provisions and benefits of the reforms to ensure smooth and successful implementation.
