The Ekiti State Internal Revenue Service (EKIRS) has moved swiftly to dispel widespread fears and misinformation regarding the upcoming national tax reforms. The agency has categorically stated that no Nigerian will have their bank account frozen solely for not having a Tax Identification Number (TIN) when the new framework begins on January 1, 2026.
Official Clarification Amid Public Panic
Addressing the media in Ado-Ekiti on Wednesday, the Chairman of EKIRS, Mr. Olaniran Olatona, expressed concern over the unnecessary panic gripping residents. He revealed that his office had witnessed an influx of citizens, including elderly individuals, driven by the false belief that their banking access would be blocked.
"I saw quite a number of old people running around to come and say, I do not want my bank account to be frozen. I want us to realise that this is a fallacy," Olatona stated emphatically. "No bank account will be frozen over non-availability of TIN." He emphasized that the law does not grant tax authorities the power to make arbitrary deductions or freeze accounts without following due legal process.
Core Objectives of the 2026 Tax Reform
Olatona explained that the reform, championed by the President Bola Ahmed Tinubu-led administration, is designed to modernise Nigeria's tax system with several key goals:
- To broaden the tax base and improve revenue generation for the state and nation.
- To encourage voluntary compliance and reduce incidents of multiple taxation.
- To create a fairer and more progressive system that protects low-income earners.
- To minimise revenue leakages and foster a better environment for business growth.
He stressed a crucial point: the reform is not an automatic increase in tax rates. Instead, it aims to ensure individuals and businesses pay what is fair. "When more people are properly captured in the system... individuals and businesses will simply pay what is fair and due—no more, no less," he said.
Focus on Growth, Not Punishment
The EKIRS Chairman used a powerful analogy to describe the philosophy behind the new approach. "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," Olatona elaborated.
He also cautioned traders and service providers against using the new reform as an excuse to arbitrarily hike prices. Contrary to causing inflation, he argued that a more efficient tax system should help reduce the cost of food and essential items by eliminating multiple levies and improving the business climate.
Olatona called on all residents of Ekiti State to fulfil their civic duty, linking tax payment to the right to demand accountability from the government. He praised the state administration under Governor Biodun Oyebanji for its responsible and visible use of public funds. The Chairman assured that EKIRS would continue public sensitisation on the actual provisions of the tax laws to ensure a smooth and understood implementation process.
