By Kayode Olopade
Amid heightened public anxiety, social media speculation and growing mistrust surrounding Nigeria’s ongoing tax reform process, the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr. Taiwo Oyedele, has moved to allay fears, insisting that the reforms currently before the National Assembly are designed to ease the burden on Nigerians, not impose fresh hardship.
Speaking at a media workshop on the new consolidated tax law held at the Radisson Blu Hotel, Ikeja, Lagos, Oyedele described widespread claims that government agencies plan to deduct money directly from citizens’ bank accounts as “false, dangerous and capable of destabilising the economy.”
Addressing selected journalists, policymakers and stakeholders, the tax reform chair said misinformation — particularly on social media — has fueled unnecessary panic among Nigerians already grappling with economic pressures.
“Let me say this clearly and unambiguously: 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,” Oyedele declared.
“Whether you have ₦50,000 or ₦50 million, nobody is taking any money from your account. It is simply not
Oyedele explained that much of the confusion stemmed from the government’s decision to consolidate several existing tax statutes into a single, harmonised tax code — a move intended to simplify Nigeria’s complex tax system.
According to him, the consolidation has been wrongly interpreted by critics as an introduction of new enforcement powers.
“What we have done is to bring existing laws together so people can understand them better,” he said. “We did not introduce any secret provision that allows government to seize funds.”
He clarified that the only legal mechanism through which unpaid taxes can be recovered directly from bank accounts remains a court-ordered garnishee proceeding, which he described as a lengthy and rarely used judicial process.
“Even in extreme cases where someone owes hundreds of millions of naira and refuses to pay, the government cannot just wake up one morning and remove money from an account,” Oyedele explained.
“You must be assessed, formally notified, given the right to object, allowed time to resolve the dispute, and only then can the matter go to court. Without a judge’s order, nobody can touch your account.”
Drawing from his nearly three decades of experience in tax administration, Oyedele said he had never witnessed a situation where funds were removed from a bank account without due judicial process.
The committee chairman recalled an earlier attempt under former FIRS Chairman, Mr. Babatunde Fowler, to impose post-no-debit orders on accounts suspected of tax evasion — a move that generated panic but yielded no financial recovery.
“That process didn’t succeed, and it created unnecessary fear,” he said. “Not a single naira was recovered. Nobody is repeating that mistake
Addressing fears that banks will now begin reporting all customer transactions to tax authorities, Oyedele clarified that such provisions are not new.
He noted that as far back as 2020, the Finance Act required business-related bank accounts to be linked with a Tax Identification Number (TIN).
More importantly, he said the new reform actually raises the reporting threshold — from ₦10 million to ₦25 million — thereby shielding more Nigerians from scrutiny, not exposing them.
“That translates to almost ₦100 million in annual turnover before any report is triggered,” Oyedele said.
Backing his claim with data, he disclosed that records from the Nigeria Inter-Bank Settlement System (NIBSS) show that 98 per cent of bank accounts in Nigeria hold less than ₦500,000.
“Those accounts will never be reported,” he stressed. “This provision has existed for five years. Nothing has changed.”
Oyedele warned that the spread of misinformation could trigger panic-driven bank withdrawals — a development capable of inflicting serious damage on the economy.
“One thing that can hurt the economy very quickly is people rushing to withdraw their money out of fear,” he cautioned.
“There is absolutely nothing in this law that authorises the government to debit accounts. Please help us educate others so we don’t create a problem where none exists.”
Reiterating the core objective of the reforms, Oyedele said the government’s focus is to simplify compliance, expand the tax net fairly, reduce multiple taxation and support economic recovery.
“This reform is not designed to punish anybody,” he said. “It is to make life easier for Nigerians, reduce the burden on households and small businesses, and help the economy grow.”
He added that the committee is working closely with the National Orientation Agency (NOA) to roll out digital explainers, public enlightenment campaigns and translations of the new tax law into major Nigerian languages.
“People fear what they don’t understand,” Oyedele noted. “Our responsibility is to explain clearly, transparently and truthfully.”
As debate continues around the proposed reforms, Oyedele urged Nigerians to rely on verified information rather than speculation, stressing that a well-informed public remains essential to the success of any national policy reform.
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