10/01/2026
Economic analyst, Kalu Aja, has said that money entering a bank account is not automatically taxed, contrary to widespread belief.
Aja made the comment on Nairametrics’ X space on Thursday, with the topic “How the new tax law affects your pay, business and daily spending.
The clarification follows growing public concerns around Nigeria’s new tax framework that took effect on January 1, 2026.
Speaking on the new tax reforms, Aja explained that only income is taxable, not every inflow, and that proper tax filing is the key legal safeguard for individuals and small businesses.
Addressing fears that bank deposits would be taxed directly, Aja said the new tax law does not target inflows, but rather income earned by taxpayers.
“Forget about trying to say if money has come into your account. No, if it has come in as income, it’s taxable,” he said.
According to him, the tax law broadly defines income to include salaries, business earnings, interest, digital earnings, and other gains, particularly for individuals and small and medium-sized enterprises (SMEs).
“Literally, any income that you make… any income literally that comes into your account as a taxpayer individual is taxable,” Aja explained.
