Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr Taiwo Oyedele, has dismissed widespread fears that the ongoing tax reforms would allow the government to deduct money directly from Nigerians’ bank accounts, describing such claims as “false, dangerous and capable of destabilising the economy.”
Oyedele gave the assurance during a media workshop on the newly consolidated tax law, amid growing public anxiety fuelled by social media warnings.
“Let me say this clearly: nobody — not FIRS, not 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 any money from your account. It is simply not true.”
He explained that the confusion arose from the consolidation of several tax laws into a single code, which some Nigerians wrongly interpreted as the creation of new enforcement powers.
According to him, the only legal route for recovering unpaid taxes remains a court-ordered garnishee, which he described as “a long legal process that is almost never used.”
“Even in extreme cases where someone owes hundreds of millions and refuses to pay, the government cannot just wake up and remove money,” Oyedele said. “They must assess you, notify you, allow objections, conclude the process, go to court, and get a judge’s order. Without that, nobody can touch your account.”
Drawing on nearly 30 years of experience in tax administration, he said he had “never seen a single instance where money was removed from an account without due judicial process.”
He also recalled an earlier attempt under former FIRS Chairman, Babatunde Fowler, to impose post-no-debit orders on suspected tax evaders, noting that the policy failed to recover any revenue.
“That process didn’t succeed, and it created unnecessary panic,” he said. “Nobody is repeating that mistake.”
Addressing concerns that banks would begin reporting all customer transactions, Oyedele clarified that the requirement for business accounts to have a Tax Identification Number (TIN) was introduced under the 2020 Finance Act. He added that the current reform raises the reporting threshold from ₦10 million to ₦25 million, equivalent to “almost ₦100 million a year before any report is triggered.”
“NIBSS data shows that 98 percent of bank accounts in Nigeria have less than ₦500,000,” he said. “Those accounts will never be reported. This provision is not new — it has been in place for five years.”
He warned that misinformation could trigger panic withdrawals with serious economic consequences.
“One thing that can damage the economy very quickly is people rushing to withdraw their money out of fear,” Oyedele cautioned. “Nothing in the law authorises the government to debit accounts. Please help us educate others so we don’t create a problem where none exists.”
Oyedele stressed that the reforms are designed to simplify compliance, broaden the tax base and ease the burden on households and small businesses.
“This reform is not to punish anybody,” he said. “It is to make life easier, reduce double taxation, and support economic recovery.”
He added that his committee is working with the National Orientation Agency to roll out digital explainers and translations of the new law in major Nigerian languages.
