Claim: Rotimi Amaechi said 25 per cent of every payment Nigerians receive will go to the Federal Government when the new tax laws are implemented after the 2027 elections.
Verdict: False! The tax laws Amaechi referred to have already been implemented since Jan. 1, 2026. Also, the law does not impose a flat 25 per cent automatic deduction on all payments, as he claimed.
Full Text
On Feb. 14, 2026, while campaigning in Rivers State, Rotimi Amaechi claimed (archived here) that under the new tax laws, 25 per cent of every payment Nigerians receive will be automatically deducted from their accounts as tax.
The former Minister of Transportation, who recently left the All Progressive Congress (APC) for the African Democratic Congress (ADC), warned supporters that re-electing APC in 2027 would bring severe hardship. He tied this to the “new tax law,” which he claimed would only take effect after the 2027 election.
“By January next year, February next year, you, all of you, will be in trouble if APC wins. Go and check, there is a tax law, because Tinubu, why is the tax law not being implemented, Ujo election?
“Immediately after the election, the APC will implement the tax law. Under the tax law, if I pay you 100 million Naira for your building materials, 25 million will be automatically deducted from your account. If you say it’s a lie, if you say it’s a lie, take my statement to your lawyer, tell your lawyer, give me the tax law and explain it to me. I’m a lawyer. I’m a lawyer,” he said.
Amaechi’s remarks have sparked reactions from several X users, including the president’s spokesperson, Bayo Onanuga, who accused him of spreading lies. Other users on X are retweeting this video, tagging Amaechi’s claim as false.
Given the prevalence of misinformation during election periods, DUBAWA decided to set the record straight with this fact check.
Verification
To begin with, Nigeria’s Tax Reform Acts, such as the Nigeria Tax Act 2025, signed in June 2025, have been in effect since Jan. 1, 2026. Federal Government announcements confirmed this. Also, there has been no public announcement of a new tax law to take effect in 2027 or that the current tax law implementation will be postponed until after the 2027 election.
Amaechi’s claim centres on withholding tax (WHT) and Value Added Tax (VAT). However, under the Nigeria Tax Administration Act, which is part of the reforms, VATs and withholding tax apply to specific categories, not a flat 25 per cent on all or gross business payments.
For example, services or consultancy only demand five per cent WHT. Rents take 10 per cent; dividends or interests, also 10 per cent.
As for the building materials he spoke about, the VAT is 7.5 per cent. There is no automatic 25 per cent WHT as stated by Amaechi.
The former minister’s source of “25 per cent” likely came from the top marginal Personal Income Tax (PIT) rate, which is not a transaction tax in the first place.
How does Personal Income Tax (PIT) work?
Nigeria’s Personal Income Tax is progressive. This means different portions of your annual income are taxed at different rates. You do not pay one flat percentage on everything you earn.
Lower portions of income are taxed at lower rates, and the highest rate (25 per cent) applies only to the part of your total yearly income that exceeds N50 million. Income up to about N800,000 is exempt for most people due to reliefs and allowances.
So, unlike Amaechi’s building materials example, if someone receives N100 million from a business transaction, the entire amount is not taxed at 25 per cent immediately, nor is tax deducted upfront like VAT.
Instead, it is added to the person’s total income for the year, and tax is calculated using the progressive brackets. Only the portion above N50 million would be taxed at 25 per cent, while the rest is taxed at lower rates.
Will the government automatically debit your bank accounts?
Furthermore, it is untrue that taxes will be automatically deducted from Nigerians’ personal bank accounts.
In December 2025, Taiwo Oyedele, Chairperson of the Presidential Committee on Fiscal Policy and Tax Reforms, clarified that the new system relies on self-declaration. That is, taxpayers will have to report their income annually, calculate their obligations, and pay voluntarily. There are no government debits or transaction monitoring for general taxes.
Conclusion
Under the newly implemented tax reforms, Nigerians will no longer automatically pay a 25 per cent withholding tax or VAT on every transaction after the 2027 election. Amaechi’s claim is false.
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