Amid growing public concern over Nigeria’s ongoing tax reforms, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr. Taiwo Oyedele, has firmly denied claims that the government plans to deduct money directly from citizens’ bank accounts, describing the reports as false, misleading, and capable of causing economic instability.
Oyedele made this clarification during a media workshop on the newly consolidated tax law, where he addressed widespread rumours circulating on social media. He said the claims were driven by ignorance of the law and deliberate misinformation.
“Let me state this clearly: no one — not the Federal Inland Revenue Service (FIRS), not the Central Bank of Nigeria (CBN), nor any government agency — has the authority to debit your bank account,” he said. “Whether you have ₦50,000 or ₦50 million, nobody is coming to take money from your account. That claim is completely untrue.”
No New Powers to Seize Funds
Explaining the source of the misunderstanding, Oyedele said the rumours stemmed from the consolidation of several tax laws into a single legal framework, which some people wrongly interpreted as the creation of new enforcement powers.
He stressed that the only lawful way the government can recover unpaid taxes is through a court-ordered garnishee process, which he described as lengthy, rare, and strictly regulated by law.
“Even if someone owes hundreds of millions in taxes and refuses to pay, the government cannot simply remove money from their account,” he explained. “The taxpayer must first be assessed, notified, given the opportunity to object, and the matter must go through the courts. Only a judge can authorise such action. Without a court order, no account can be touched.”
Oyedele added that in nearly 30 years of experience in tax administration, he has never witnessed funds being withdrawn from a bank account without due judicial process.
He also recalled a previous attempt to place post-no-debit orders on accounts suspected of tax evasion under a former FIRS leadership, noting that the move failed to recover any funds and only created public panic.
“That approach did not work and only caused unnecessary fear,” he said. “There is no intention to repeat that mistake.”
Higher Reporting Threshold, Not a New Tax
Addressing concerns that banks will begin reporting all customer transactions, Oyedele clarified that the requirement for business accounts to be linked to a Tax Identification Number (TIN) has been in place since the 2020 Finance Act.
He noted that the new reform actually increases the transaction reporting threshold from ₦10 million to ₦25 million, which he said effectively amounts to nearly ₦100 million annually before any reporting obligation is triggered.
“Data from the Nigeria Inter-Bank Settlement System shows that about 98 per cent of bank accounts in Nigeria hold less than ₦500,000,” he said. “Those accounts will never be reported. This is not a new provision — it has existed for five years.”
Warning Against Panic Withdrawals
The tax reform chair warned that continued spread of false information could trigger panic withdrawals, which he said could severely harm the economy.
“One of the fastest ways to destabilise an economy is for people to rush to withdraw their savings out of fear,” he cautioned. “Nothing in the law allows the government to debit personal accounts. We urge the public to help stop the spread of misinformation.”
Oyedele reiterated that the objective of the tax reform is to simplify compliance, widen the tax base fairly, and ease the burden on households and small businesses.
“This reform is not designed to punish anyone,” he said. “It is meant to reduce multiple taxation, make compliance easier, and support economic recovery.”
He also disclosed that the committee is collaborating with the National Orientation Agency to produce digital explainers and translate the new tax law into major Nigerian languages to improve public understanding.
