Claim: An X user, @drkenon2, shared a video featuring former Rivers State governor and ADC chieftain, Mr Rotimi Amaechi, claiming that the new tax law mandates a 25% automatic deduction on every transaction.

Verdict: False. The claim misrepresents the provisions of the new tax law.

Background

Chibuike Rotimi Amaechi is a Nigerian politician who served as Minister of Transportation from 2015 to 2022 under President Muhammadu Buhari. After resigning in April 2022, he contested the APC presidential primaries in 2023, finishing second.

In July 2025, Amaechi left the APC, citing dissatisfaction with governance and alleged electoral manipulation. He joined the African Democratic Congress (ADC) and declared his intention to run for president in 2027. In August 2025, speaking in Kano, Amaechi reaffirmed his ambition.

He returned to Kano in February 2026, warning Nigerians against voting for the APC, claiming the new tax law would punish citizens. In a video shared on X, he stated:

“By January/February next year, all of you will be in trouble if the APC wins. Immediately after the 2027 election, the APC will implement the tax law. The tax law means that if I pay you ₦100 million for your building materials, ₦25 million will automatically leave your account.”

The video has gained traction across platforms, with 194.8k views, 1.8k reposts, 3.4k likes, and 303 replies on X. It has also circulated on  Facebook, Niger Reality News, and This is Bendel Post

See the screenshot of the video below:

On X, there were mixed reactions.

@Ayomi_T0by was convinced the claim was misleading, saying, “The 25% rate is NOT an automatic 25% deduction slapped on everything…That’s false!

@matgoke13 frowned at the style of Amaechi’s campaign, saying, “No, not now. This is totally false, and this is not a campaign. I want this govt out, but we can’t oust them based on lies

@drkenon2 blamed the government for delayed implementation: Implementing it at the wrong time is enough reason to reject this government. No political party pushes out propaganda like the APC

@Nairaexchanger believed Amaechi was justified, saying, “Amaechi is warning them about the tax law. If they like, they can allow APC to useless their hard work and generation.”

Since leaving APC in 2025, Amaechi has remained a vocal critic of the APC, citing worsening economic conditions under President Tinubu.

Verification

NDRFact reviewed the Nigeria Tax Act 2025 and other credible sources to verify the truth of Amaechi’s claim.

According to the “Nigeria Tax Act 2025: Complete Guide to the New Tax Law“, the law introduces progressive income tax rates, with a maximum of 25% applied only to the highest income bracket. There is no provision for automatic deductions from bank accounts or transactions. As such, taxes are assessed and paid through standard procedures, not auto-debited.

Kuda.com clarified: “If you’re a business owner or freelancer, you’ll benefit from a fairer system that taxes you only on what you truly earn, not what sits in your account.”

The data below shows that transactions are not taxed, but incomes are earned progressively:

Data culled from Salario; Chart designed by NDRFactcheck

Similarly, even for corporate income tax, Kuda adds that “You are taxed on the income you earn, not on the assets you own. If ₦1 million sits in your account, it’s not taxable. But if it earns 10% interest, you’ll pay tax on the ₦100,000 interest, not the ₦1 million.”

Meanwhile, as the claim became viral on social media, the presidency reacted, debunking “the claim as inaccurate and misleading, insisting that the Tax Act does not contain any provision that allows for an automatic 25% deduction from payments as suggested.”

In addition, the Chairman of the Presidential Fiscal Policy and Tax Reform Committee, Prof. Taiwo Oyedele, also debunked the claim on his verified X handle, @taiwoyedele, clarifying that the “𝐍𝐢𝐠𝐞𝐫𝐢𝐚 𝐓𝐚𝐱 𝐀𝐜𝐭 2025 𝐡𝐚𝐬 𝐂𝐨𝐦𝐦𝐞𝐧𝐜𝐞𝐝 𝐚𝐧𝐝 𝐃𝐨𝐞𝐬 𝐍𝐎𝐓 𝐈𝐦𝐩𝐨𝐬𝐞 𝐚 25% 𝐓𝐚𝐱 𝐨𝐧 𝐁𝐮𝐢𝐥𝐝𝐢𝐧𝐠 𝐌𝐚𝐭𝐞𝐫𝐢𝐚𝐥𝐬 𝐨𝐫 𝐅𝐮𝐧𝐝𝐬.” Oyedele further warned the public, saying, “Fact Not Fear”; evidence beats emotion. If anyone makes an alarming claim or tries to misinform you, ask them, “Where is it in the law?”

Conclusion

There is no credible evidence supporting the claim of a 25% automatic deduction on every transaction. The new tax law is designed to be progressive and fair, targeting actual income rather than blanket deductions.

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