Tax reform official on Friday moved to calm public fears over sweeping tax code changes, emphatically denying that the federal government has the authority to withdraw money from citizens’ bank accounts under the new regime.
Taiwo Oyedele, chairman of the Presidential Fiscal Policy and Tax Reforms Committee, addressed a media workshop on the consolidated tax law amid spreading anxiety across social media platforms that the government could directly debit bank accounts to collect unpaid taxes. “Let me say this clearly: nobody — not FIRS, not CBN, not any government agency — has the power to debit your bank account,” Oyedele said, dismissing the viral claims as “false, dangerous and capable of destabilising the economy.”
The clarifications come as President Bola Ahmed Tinubu’s tax overhaul, enshrined in the Nigerian Tax Administration Act, prepares to take effect in January 2026, sparking confusion and misinformation among ordinary Nigerians.
Oyedele explained that the only legal route for recovering unpaid taxes remains a court-ordered garnishee process, which he described as “a long legal process that is almost never used.” He said that even in rare situations where a judgment is granted, the government “cannot just wake up and remove money” without due legal process.
Amid the debates, officials also confirmed that banks will be required to request Tax Identification Numbers (TINs) from all taxable individuals before they can operate accounts beginning January 1, 2026. Under Section 4 of the tax law, possession of a TIN will become a formal condition for taxable persons — defined as those engaged in business or income-generating activities — though students and dependents remain exempt.
“People who do not earn an income such as students and dependents are not required to obtain a tax ID,” Oyedele said in his statement, seeking to allay concerns that ordinary citizens could face restricted access to their funds.
The reforms also include measures aimed at modernising Nigeria’s tax structure and boosting revenue compliance, with analysts viewing the TIN requirement as part of efforts to expand the tax net and reduce leakage.
Despite reassurances, economic experts have urged clearer communication from the government to ensure citizens understand the implications of the changes without fear, as the rollout of the new law approaches.
As Nigeria navigates one of its most significant fiscal policy shifts in decades, officials are balancing public reassurance with enforcement of measures intended to modernise the country’s tax system and strengthen revenue collection.
