Amid growing concerns over the ongoing tax reforms in Nigeria, Mr. Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, has sought to reassure the public, dismissing claims that the government plans to seize funds directly from bank accounts. He called such fears “false, dangerous, and capable of destabilising the economy”.

Speaking at a media workshop on the newly consolidated tax law, Oyedele clarified that the warnings circulating on social media were based on misinformation and ignorance. “Let me say this clearly: nobody — not FIRS, not CBN, not any government agency — has the power to debit your bank account,” Oyedele stated emphatically. He went on to assert that, regardless of the balance in one’s account, “nobody is taking any money from your account. It is simply not true.”

No New Powers to Seize Funds

Oyedele explained that the misconceptions arose following the consolidation of several key tax laws into a single framework, leading some to believe that the government had granted itself new enforcement powers. However, he clarified that the only mechanism by which the government could recover unpaid taxes is through a court-ordered garnishee — a lengthy legal process that is rarely used.

He stressed, “Even in extreme cases, where someone owes hundreds of millions and refuses to pay, the government cannot just wake up and remove money. There must be an assessment, a notification, a chance for objections, and then a court order. Without that, nobody can touch your account.” He also pointed out that in his nearly 30 years of tax administration, he has never witnessed any case where funds were removed from an account without judicial approval.

Oyedele further recounted an unsuccessful attempt by the former FIRS Chairman Babatunde Fowler to impose post-no-debit orders on accounts suspected of tax evasion, which ultimately failed without recovering any funds. He reassured Nigerians that “nobody is repeating that mistake.”

Clarifying Bank Reporting Requirements

Addressing misconceptions about mandatory bank reporting, Oyedele confirmed that the 2020 Finance Act already required business accounts to be linked with a Tax Identification Number (TIN). However, the new reform actually raises the threshold for mandatory bank reporting from ₦10 million to ₦25 million — meaning accounts holding less than ₦100 million annually will not be flagged for reporting. He noted that 98% of Nigerian bank accounts hold less than ₦500,000, so these accounts will not be affected.

“This provision is not new,” he emphasized. “It has been in place for five years.”

Risks of Panic Withdrawals

Oyedele also warned that the circulating rumors could cause unnecessary panic withdrawals, which could harm the economy. “One thing that can damage 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 accounts. Please help us educate others so we don’t create a problem where none exists.”

Goals of the Tax Reforms

The committee chair reiterated that the primary goal of the tax reforms is not to punish anyone, but rather to simplify compliance, expand the tax net, and ease the burden on households and small businesses. He emphasized that “this reform is not to punish anybody”, but to improve the country’s tax system and support its economic recovery.

Oyedele added that his committee is collaborating with the National Orientation Agency (NOA) to release digital explainers and translations of the new tax law in major Nigerian languages, ensuring widespread understanding and reducing any misconceptions.