A wave of online panic over claims that the Nigerian government was preparing to tax citizens’ savings has been dismissed by a financial analyst, who says the controversy stems from a fundamental misunderstanding of existing tax rules.

Omowunmi Samuel, an Abuja-based analyst, confirmed that the Federal Inland Revenue Service has not introduced any new levy on savings. Instead, she said an existing withholding tax on interest earned from financial instruments is simply being enforced, as it has been for years.

The clarification followed a viral social media uproar alleging that Treasury bills, corporate bonds, and other short-term investments were about to be newly taxed by the FIRS.

Samuel said nothing in the recent public notice from the agency represents a fresh policy. “This has been in place for years. It is incorrect to claim the government is suddenly targeting people’s savings,” she said.

She explained that savings are not taxable, but income derived from savings, such as interest, is treated as earnings and has always been subject to withholding tax under the Companies Income Tax Act. A temporary exemption for certain short-term securities reportedly expired last year, prompting financial institutions to resume standard deductions.

Samuel linked the renewed enforcement to Nigeria’s broader 2025 tax reform strategy, which seeks to increase non-oil revenue as the government faces shrinking crude output, high fiscal pressure, and rising debt obligations. She also noted that automatic tax deductions on investment income are a global norm designed to improve compliance.

She cautioned Nigerians to avoid misinformation that could fuel unnecessary public anxiety. “The FIRS is not targeting personal savings. What it is doing is making sure taxable investment income is properly accounted for, just as it has always been,” she said, urging the public to rely on verified guidance rather than social media speculation.