The Presidential Fiscal Policy and Tax Reforms Committee has held a high-level engagement with financial institutions to ensure that customers are not wrongly charged under the implementation of the new tax laws.
The engagement, titled “Implementation of New Tax Acts for Financial Institutions,” brought together key stakeholders, including the Nigeria Revenue Service (NRS), the Joint Revenue Board (JRB), the Central Bank of Nigeria (CBN), and representatives of the Presidential Fiscal Policy and Tax Reforms Committee.
Participants at the session included Risk and Compliance Officers, Legal Advisers, Chief Financial Officers, and Regulatory Affairs Executives from fintech companies, commercial and microfinance banks, pension fund administrators, asset managers, investment firms, and other financial institutions.
The committee said that a major focus of the meeting was to prevent erroneous or excessive charges on bank customers, especially in relation to electronic transactions and account maintenance. It clarified that the tax reforms did not introduce any new tax or levy on electronic transfers or on funds held in bank accounts.
Rather, the reforms aim to improve clarity, harmonisation, and efficiency within the tax system.
It was also disclosed that under the new laws, many businesses are now eligible to claim input Value Added Tax (VAT) credits on bank charges, a move expected to reduce operational costs for compliant enterprises.
Other key issues discussed at the meeting included: The use of Tax Identification Numbers (TIN) as a requirement for bank accounts operated for business or income purposes, a policy that has been in effect since January 13, 2020;
Providing tailored guidance to customers to help them file tax returns and claim applicable tax deductions;
The repeal of Tax Clearance Certificates (TCC) as a requirement for foreign exchange transactions, which the committee said would improve the ease of doing business.
Clarification of the due process for the exercise of the “power of substitution” by tax authorities; The introduction of additional safeguards for taxpayers, including protections under the proposed Office of the Tax Ombud.
The committee stated that the reforms are designed to support tax harmonisation, formalisation of the economy, financial inclusion, and greater trust in the financial system, while making compliance simpler and more transparent.
However, the engagement session came amid sustained criticism of the committee and its chairman, Taiwo Oyedele, by many Nigerians on social media and other platforms. Critics argue that public trust in the tax reform process has been eroded by controversies surrounding alleged discrepancies in the gazetted tax laws.
Some commentators said the handling of those discrepancies represented a missed opportunity to rebuild public confidence. Rather than pausing to address concerns and review the issues openly, they claim the committee responded defensively and dismissed critical voices.
A public affairs analyst said: “You don’t ask people to trust you; you earn it. The controversy over the gazetted laws was a chance to show transparency. Instead, what Nigerians saw was denial and attacks on critics. Now, this engagement session looks more like damage control than genuine dialogue.”
While the committee insists that no new taxes have been imposed on electronic transactions, some Nigerians remain sceptical, raising concerns that linking national identity data to tax identification could increase surveillance, expose citizens to data breaches, and place additional burdens on those in the informal sector.
Others argue that although the input VAT credit on bank charges sounds beneficial, small traders and micro-businesses may struggle to access the benefits due to bureaucracy, system inefficiencies, and the high cost of compliance.
“There is a big difference between reform on paper and reform in real life,” a critic noted. “A market woman with a typo in her records doesn’t have lawyers or accountants to fight penalties. That’s the reality.”
Questions have also been raised about the inclusiveness of the engagement, which was attended mainly by executives and regulatory professionals. Critics argue that farmers, transport workers, small traders, and students who are directly affected by tax and financial policies were not represented.
Another contentious issue is the repeal of the Tax Clearance Certificate requirement for foreign exchange transactions. While the committee said this would improve ease of doing business, critics fear it could create loopholes for capital flight and corruption.
“If taxes are truly for shared prosperity, Nigerians want to see tangible benefits,” a commentator said. “Better power supply, good roads, quality healthcare, and security. Without these, it is hard to convince citizens that higher compliance will lead to a better life.”
As implementation of the new tax regime continues, observers say the success of the reforms will depend not only on technical engagement with financial institutions but also on transparency, accountability, and genuine inclusion of ordinary Nigerians in the conversation.