Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr. Taiwo Oyedele, has attributed the growing public anxiety over Nigeria’s new tax reforms to poor tax awareness, insisting that many of the issues causing concern are not new and have existed in law for several years.
Oyedele made this clarification while speaking to journalists over the weekend, ahead of the January 2026 implementation of the country’s reformed tax framework. According to him, many Nigerians are reacting out of fear because they are encountering key tax provisions for the first time.
He explained that much of the information currently circulating about Tax Identification Numbers (TINs), individual taxpayer identification, and monthly reports required from banks on customers’ accounts are provisions already contained in the Finance Act of 2020.
“Because the level of tax awareness in Nigeria is so poor, people are finding out so many things for the first time. They just assume that the new tax law is introducing them. This one is actually not,” Oyedele said.
He stressed that the new tax reforms are not designed to spring surprises on citizens but rather to consolidate, simplify, and clarify existing tax laws.
Addressing widespread fears that government agencies or banks could arbitrarily withdraw money from individuals’ bank accounts under the new tax regime, Oyedele categorically dismissed such claims.
According to him, no bank, government agency, or private institution has the power to debit a person’s account without due process, regardless of the amount of money held.
“Even if you have N1 billion in the account, nobody can debit your bank account,” he said.
Oyedele outlined the legally required process for tax enforcement, noting that it involves several stages and safeguards.
“If you’re not paying your taxes, they write to you, you write back, you do a final assessment, it’s conclusive, and then you go to court. It’s a long process,” he explained.
He further clarified that while the law recognises a mechanism known as “power of substitution”, this does not translate to arbitrary deductions. In other jurisdictions, he noted, the process is similar to what is called a garnishee order, which can only be executed after strict legal procedures.
Oyedele’s comments come amid rising uncertainty and public debate ahead of the implementation of the 2025 Nigeria Tax Administration Act, which takes effect in January 2026 as part of Nigeria’s broader tax overhaul.
He recalled that under existing tax laws, taxable Nigerians are required to have a tax identification number to operate their bank accounts, a requirement that predates the new reforms.
According to Oyedele, the ongoing reforms are aimed at improving compliance, transparency, and fairness, while reducing confusion and misinformation surrounding taxation in Nigeria.
He urged Nigerians to seek accurate information from official sources and assured the public that the reforms are not intended to punish citizens but to create a more efficient and growth-friendly tax system.