Will Bank Transfers Without Narrations Be Taxed Under Nigeria’s New Tax Law?
On December 31, 2025, an X user @HighChiefOkoro claimed that bank transfers done without well defined ‘narrations’ will be taxed, under the new tax law. The post had an image of a gavel on a sheet with “TAX LAW” being written, and is captioned “The habit of not writing narration on your transfers should end today. From tomorrow any transaction you make should have narrations like “payment for food, house rent, school fees, hospital bill, etc). The moment you leave it empty, it will be taxed. Happy new year in advance.”
When this report was published, the post had over 7,500 views and about 108 replies, repost, quotes, likes and bookmarks. In the comment section, @ederiomo wrote “keep quiet…not writing narration has been cleared and its not taxable in anyway…stop misleading people” while @Dannymasterp said “Government is taking it to the next level… Nigeria is no longer going to remain the same after this administration.”
VERIFICATION
The chairman of the Nigeria Revenue Service, NRS, Dr Zacch Adedeji, has publicly clarified that personal bank transfers are not being taxed, and that neither state nor federal tax authorities will “pry into your bank account” or tax transfers based on their narration.
Also, the chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, also dismissed rumors that bank account narrations determine tax. He reiterated that no one will debit your account based on how you describe a transfer, and that such reports are misinformation.
Nigeria’s tax system taxes income, not individual bank inflows or descriptions attached to them. Simply transferring money (with or without narration) does not automatically trigger taxation. Money received as gifts, personal transfers, or loans does not automatically become taxable income just because a description is missing.
Also, there is no provision in Nigerian tax law that a transfer becomes taxable simply because the narration is missing.
CONCLUSION
The claim that bank transfers without narrations will be taxed is FALSE. There is no provision in Nigerian tax law that a transfer becomes taxable simply because the narration is missing. Officials have clearly stated that tax authorities will not monitor or tax personal transfers based on narration. Besides, tax applies to income earned, and individuals self-declare their income under the new system.
