The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has ruled out fears that Nigerian tax authorities can debit bank accounts without court approval. Speaking on Wednesday, he said no deductions can occur unless tax liabilities are conclusively determined through the judicial system. His remarks come amid rising public anxiety over newly gazetted tax laws.
Oyedele addressed the controversy during an appearance on the Arise Television Morning Show, where he dismissed claims that recent tax reforms allow arbitrary access to citizens’ bank accounts. He stressed that the law requires a lengthy legal process before any enforcement action is taken against a taxpayer’s funds.
According to him, tax recovery from bank accounts, known as the “power of substitution,” only applies after a tax obligation becomes final and binding. He explained that the process begins with an official tax assessment issued to the taxpayer. If disputed, the matter proceeds through objection stages and then to the Tax Appeal Tribunal.
From there, unresolved cases may advance to the High Court, the Court of Appeal, and ultimately the Supreme Court. Oyedele said only after exhausting these legal stages can tax authorities move to recover unpaid taxes. He emphasized that the provision is not new and has existed under Nigeria’s current tax laws for years.
Oyedele cautioned against misleading interpretations that could cause panic within the financial system. He warned that careless narratives suggesting instant access to bank accounts could trigger unnecessary fear, including bank withdrawals based on misinformation. He added that such enforcement measures are typically applied only in serious cases.
The committee chairman also rejected allegations that the newly gazetted tax laws were altered secretly to remove judicial oversight. He said many claims circulating online were unsupported and not based on any verified investigation. According to him, some controversial provisions being quoted do not exist in the official laws.
He acknowledged that confusion arose partly because a harmonised version of the tax bills passed by the National Assembly has not yet been officially published. Oyedele said releasing that version would have prevented much of the speculation.
Despite calls for suspension of the reforms, Oyedele said halting the tax laws would be impractical. He noted that key changes, including the creation of the Nigeria Revenue Service, are already in effect. He urged Nigerians to read the full laws carefully rather than relying on isolated provisions.
