Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has said the growing anxiety among Nigerians over the country’s new tax reforms is largely driven by poor public awareness, not by any new or harsh provisions in the law.
Oyedele made this clarification during a media interaction over the weekend, ahead of the January 2026 implementation of the 2025 Nigeria Tax Administration Act.
According to him, many of the issues currently causing panic — including the Tax Identification Number (TIN), Taxpayer Identification Number, and banks’ obligation to submit periodic reports on customers’ accounts — are not new introductions.
He explained that these provisions have existed since the 2020 Finance Act but are only now gaining widespread attention.
“The level of tax awareness in Nigeria is very poor, so people are finding out about so many things for the first time. They just assume that the new tax law is introducing them. It is not,” Oyedele said.
Addressing fears that government agencies could arbitrarily withdraw money from citizens’ bank accounts, Oyedele dismissed such claims as false and misleading.
He stressed that neither banks nor government authorities have the legal power to debit individuals’ accounts without due process.
“Even if you have N1 billion in your account, nobody can debit your bank account,” he said.
He outlined that tax enforcement follows a strict legal process, beginning with formal notification, opportunity for response, final assessment, and, where necessary, court proceedings — a process he described as lengthy and structured.
Oyedele also explained the concept of “power of substitution,” noting that it is similar to what is known in other jurisdictions as a garnishee order and does not permit arbitrary account deductions.
His remarks come amid widespread uncertainty and public debate surrounding the January 2026 rollout of the new tax administration framework.
It will be recalled that Oyedele had earlier stated that Nigerians who fall within the taxable bracket would be required to have a tax identification number to operate their bank accounts — a requirement he insists is rooted in existing law, not a sudden policy shift.
The committee chairman urged Nigerians to seek accurate information and avoid misinformation as the country moves toward implementing the tax reforms.
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