Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr. Taiwo Oyedele, has assured Nigerians that the government has no authority or plan to deduct money directly from citizens’ bank accounts.
Speaking at a media workshop on the newly consolidated tax law, Oyedele described circulating social-media warnings as false, misleading, and capable of destabilising the economy.
“Let me say this clearly: nobody — not FIRS, not CBN, not any government agency — has the power to debit your bank account,” he stated.
“Whether you have ₦50,000 or ₦50 million, nobody is taking any money from your account.”
No New Powers to Withdraw Funds
Oyedele explained that the misinformation stems from confusion around the consolidation of multiple tax laws into a single code. According to him, the reform did not introduce any new enforcement authority for the government.
He emphasized that the only method legally permitted for recovering unpaid taxes is a court-ordered garnishee, which involves a long process:
Assessment
Notification
Opportunity for objection
Final determination
Court hearing
Judge’s order
“Without a court order, nobody can touch your account,” he clarified.
Oyedele added that in almost 30 years of working in tax administration, he has never witnessed any case where money was removed from an account without due judicial process.
He also recalled the failed attempt during the tenure of former FIRS Chairman Babatunde Fowler to impose post-no-debit orders on suspected tax evaders — an initiative that recovered no funds and caused unnecessary panic.
Bank Reporting Threshold Raised to ₦25 Million
Addressing the viral claim that banks will now report every transaction to the government, Oyedele explained:
Since the 2020 Finance Act, business-related accounts must have a Tax Identification Number (TIN).
The new reform actually makes the rule less strict, raising the reporting threshold from ₦10 million to ₦25 million per transaction, equivalent to nearly ₦100 million yearly before any report is triggered.
He noted that 98% of Nigerian bank accounts contain less than ₦500,000, based on NIBSS data.
“Those accounts will never be reported. This provision is not new — it has existed for five years.”
Panic Withdrawals Could Harm the Economy
Oyedele warned that the spread of false information could lead to panic withdrawals, which could harm the financial system.
“One of the quickest ways to damage the economy is for people to start withdrawing their money out of fear. There is absolutely nothing in the law that allows government to debit accounts.”
Reforms Meant to Ease, Not Increase, Tax Burden
He reiterated that the purpose of the tax reforms is to:
Simplify tax compliance
Reduce double taxation
Expand the tax net
Support households and small businesses
Boost economic recovery
“This reform is not to punish anybody. It is to make life easier.”
He also revealed that the committee is collaborating with the National Orientation Agency to release digital explainers and translations of the tax law in major Nigerian languages.