Amid rising public anxiety over Nigeria’s ongoing tax reforms, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr. Taiwo Oyedele, has firmly dismissed claims that the government plans to deduct money directly from citizens’ bank accounts, describing such reports as “false, dangerous and capable of destabilising the economy.”
Speaking at a media workshop on the newly consolidated tax law, Oyedele said the alarming narratives circulating on social media were driven by ignorance and deliberate misinformation.
“Let me say this clearly: nobody — not the Federal Inland Revenue Service (FIRS), not the Central Bank of Nigeria (CBN), not any government agency — has the power to debit your bank account,” he said. “Whether you have ₦50,000 or ₦50 million, nobody is taking money from your account. That claim is simply not true.”
No New Powers to Seize Bank Funds
Oyedele explained that the controversy stemmed from the consolidation of several tax statutes into a single code, which some Nigerians wrongly interpreted as the introduction of new enforcement powers.
According to him, the only lawful method for recovering unpaid taxes remains a court-ordered garnishee process — a lengthy legal procedure that requires judicial approval.
“Even where someone owes hundreds of millions in unpaid taxes, the government cannot just wake up and remove money from their account,” he said. “There must be an assessment, proper notification, opportunity for objection, conclusion of the process, and a court order. Without a judge’s approval, nobody can touch your account.”
Drawing from nearly 30 years of experience in tax administration, Oyedele said he had never witnessed a case where funds were removed from a bank account without due judicial process.
He also recalled a failed attempt under a former FIRS leadership to impose post-no-debit orders on suspected tax evaders, noting that the approach created panic but did not recover a single naira.
“That approach didn’t work, and no one is repeating that mistake,” he added.
Reporting Threshold Raised, Not a New Tax
Addressing concerns about banks reporting customer transactions to tax authorities, Oyedele clarified that the requirement for business accounts to have a Tax Identification Number (TIN) was introduced under the Finance Act of 2020.
He stressed that the new reform actually raises the reporting threshold from ₦10 million to ₦25 million.
“That translates to nearly ₦100 million in annual turnover before any report is triggered,” he explained.
Citing data from the Nigeria Inter-Bank Settlement System (NIBSS), Oyedele said about 98 percent of bank accounts in Nigeria hold less than ₦500,000 and would never fall under the reporting requirement.
“This provision has existed for five years. It is not new,” he said.
Panic Withdrawals Could Hurt the Economy
Oyedele warned that misinformation surrounding the reforms could trigger panic-driven withdrawals, which could have damaging consequences for the economy.
“One thing that can harm the economy very quickly is people rushing to withdraw their money out of fear,” he cautioned. “Nothing in the law authorises the government to debit bank accounts. Nigerians should not create a problem where none exists.”
He reiterated that the objective of the tax reforms is to simplify compliance, broaden the tax base, reduce multiple taxation, and ease the burden on households and small businesses.
“This reform is not designed to punish anyone,” Oyedele said. “It is meant to make life easier and support economic recovery.”
He added that the committee is collaborating with the National Orientation Agency to roll out digital explainers and translated versions of the new law in major Nigerian languages to improve public understanding.
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