Amid growing public anxiety over the ongoing tax reforms, the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr Taiwo Oyedele, on Friday dismissed claims that the government intends to deduct money directly from Nigerians’ bank accounts, describing the reports as “false, dangerous and capable of destabilising the economy.”
Oyedele spoke at a media workshop on the new consolidated tax law, where he said the claims circulating on social media were driven by ignorance and deliberate misinformation.
“Let me be very clear: nobody — not the FIRS, not the 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 is simply not true.”
He explained that the misconception arose from the consolidation of several tax statutes into a single legal framework, which some Nigerians wrongly interpreted as granting the government new enforcement powers.
According to him, the only legal route for recovering unpaid taxes remains a court-ordered garnishee, a process he described as lengthy, rare and strictly guided by judicial oversight.
“Even where someone owes hundreds of millions of naira, the government cannot just wake up and take money,” Oyedele said. “There must be assessment, notification, opportunity for objection, court proceedings and a judge’s order. Without that, no account can be touched.”
He noted that in nearly 30 years of tax administration experience, he has never witnessed funds being withdrawn from a bank account without due legal process.
Oyedele also recalled the unsuccessful attempt under a former FIRS leadership to impose post-no-debit orders on suspected tax evaders, stressing that the approach failed and only created panic.
“Nobody is repeating that mistake,” he said.
Addressing fears that banks will begin reporting all customer transactions, Oyedele clarified that the requirement for business accounts to have a Tax Identification Number (TIN) was introduced in the 2020 Finance Act. He added that the new reforms actually increase the reporting threshold from ₦10 million to ₦25 million per transaction, amounting to nearly ₦100 million annually before any report is triggered.
“NIBSS data shows that 98 per cent of bank accounts in Nigeria have less than ₦500,000,” he said. “Those accounts will never be reported. This provision has existed for five years.”
The committee chairman warned that the spread of false information could trigger panic withdrawals with damaging consequences for the economy.
“One of the fastest ways to hurt the economy is for people to rush to withdraw their money out of fear,” he cautioned. “There is nothing in the law that allows government to debit bank accounts.”
Oyedele stressed that the objective of the tax reform is to simplify compliance, broaden the tax base and reduce the burden on households and small businesses.
“This reform is not meant to punish anyone,” he said. “It is designed to reduce multiple taxation, make compliance easier and support economic recovery.”
He added that the committee is working with the National Orientation Agency to release digital explainers and translations of the new tax law in major Nigerian languages to improve public understanding.