“Nobody Is Taking Money From Your Bank Account” — Oyedele on Tax Reforms

Amid rising public concern over Nigeria’s ongoing tax reforms, Mr. Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, has categorically assured Nigerians that no government agency has the authority to withdraw funds directly from personal bank accounts. Speaking at a media workshop on the new consolidated tax law, Oyedele described recent claims circulating on social media as “false, dangerous and capable of destabilising the economy.”

He clarified that neither the Federal Inland Revenue Service (FIRS), the Central Bank of Nigeria (CBN), nor any other government agency can access individual bank funds. “Whether you ff ¦50,000 or ¦50 million, nobody is taking any money from your account. It is simply not true,” Oyedele emphasized.

The chairman explained that the confusion stems from the consolidation of multiple tax statutes into a single code, which some interpreted as granting new enforcement powers. He stressed that the only legal avenue for recovering unpaid taxes is a court-ordered garnishee, a process that involves assessment, notification, opportunity for objections, and a judge’s approval. “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. He added that in his nearly 30 years of tax administration experience, he has never seen a single instance where funds were taken from an account without due judicial process.

Oyedele recalled a past attempt under former FIRS Chairman Babatunde Fowler to impose post-no-debit orders on accounts suspected of tax evasion. That effort, he said, failed to recover a single naira and created unnecessary public panic. “That process didn’t succeed, and it created unnecessary panic. Nobody is repeating that mistake,” he noted.

Addressing the misconception that banks will now report all transactions, Oyedele pointed out that the 2020 Finance Act already requires accounts used for business purposes to be linked to a Tax Identification Number (TIN). The new reform actually raises the reporting threshold from ¦10 million to ¦25 million, equivalent to nearly ¦100 million in annual transactions before any report is triggered. He cited data from the Nigeria Inter-Bank Settlement System showing that 98 percent of bank accounts in Nigeria hold less than ¦500,000, meaning most accounts will not be affected.

Oyedele also warned that misinformation about the reforms could trigger harmful mass withdrawals. “One thing that can damage the economy very quickly is people rushing to withdraw their money out of fear,” he cautioned, reiterating that nothing in the law authorises the government to debit accounts. He urged Nigerians to assist in educating the public to prevent unnecessary panic.

He concluded by explaining that the purpose of the tax reforms is to simplify compliance, broaden the tax net, and reduce burdens on households and small businesses. “This reform is not to punish anybody. It is to make life easier, reduce double taxation, and support economic recovery,” Oyedele said. The committee is also working with the National Orientation Agency to release digital materials and translations of the law in major Nigerian languages to ensure widespread funderstanding.