A recent social media post has ignited a fresh conversation about the practical implications of Nigeria's new tax laws, which took effect at the start of 2026. The discussion centers on the creative, and potentially risky, methods citizens are adopting to navigate potential bank charges associated with business transactions.
The Viral TikTok Experience
The conversation was sparked by a video shared on TikTok by a user with the handle @tollysmart. In the clip, a Nigerian lady recounted a surprising experience she had while paying for clothes she purchased from a vendor. According to her, the vendor instructed her to write "loan refund" in the description or narration field of the bank transfer.
The lady, who humorously identified herself as a "tax man," found the request amusing. She captioned her video: "I bought clothes from a vendor this evening and she told me to put 'loan refund' in the description not knowing I’m a tax man. The moment she said 'loan refund', I started laughing." This simple anecdote opened a floodgate of reactions, highlighting widespread public anxiety and confusion surrounding the newly implemented fiscal policies.
Public Reaction and Widespread Concerns
The video quickly garnered significant attention, with commenters expressing a mix of concern, confusion, and criticism. Many users pointed out the inherent risks in such practices for both buyers and sellers.
One user, @Krowned prince, raised a critical issue: "A lot of people will cry because of this narration thing... imagine paying a vendor for cloth and you used loan refund as your narration then she refuses to deliver your cloth, what proof do you have that the payment was for the cloth you ordered for?" This comment underscores how altering transaction details can weaken legal and financial protections for consumers.
Other reactions revealed that the "loan refund" instruction is not an isolated case. A comment from belinda_01 stated: "My own perfume vendor talk say make I put either gift, support or feeding as the description… Na support I put." This indicates a broader trend where small business owners are advising customers to use personal or non-commercial labels like "gift," "support," or "feeding" to mask the true nature of the transaction.
Further comments exposed a deep-seated lack of understanding about how the tax laws operate. User IFY'S CALL CONNECT asked, "please i don't get the whole tax thing. how does it run. is everyone paying the tax," while another user with the handle January 10th questioned the government's ability to track informal business income.
Broader Context and Related Stories
This incident is part of a larger pattern of Nigerians seeking ways to minimize deductions under the new tax framework. The original report referenced a related story where a man publicly shared how he 'smartly' escaped a bank charge on his first transaction of 2026 by manipulating the transfer description. His stated rationale was a reluctance to let the government "reap where they did not sow."
These stories collectively point to a significant communication gap and a potential implementation challenge. While the intent of the tax laws is to broaden the revenue base, the practical response from a segment of the informal economy is to obscure transaction trails. This poses questions about enforcement, taxpayer education, and the design of the policy itself.
The core issue, as highlighted by some reactions, is the impact on small business profits. One commenter, WAISTBEADS BY RM, framed it mathematically: "But actually the whole money you bought with can’t be her profit, let’s say the cloth was 8k and she herself bought for 6k and her profit is 2k is she supposed to let go of over 1k from her profit on tax?" This sentiment reflects the fear that taxes could consume a substantial portion of already thin profit margins for micro-entrepreneurs.
The viral TikTok video, posted on January 5, 2026, has become a focal point for a national debate on compliance, survival, and the everyday realities of new government policies in Nigeria's dynamic and often informal economy.
