No Bank Account Will Be Debited Under New Tax Laws, Oyedele Assures

The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has reassured Nigerians that with the implementation of the new tax law commencing in January 2026, no authority has the power to deduct money directly from individuals’ bank accounts, insisting that the fear of arbitrary debits was unfounded and dangerous for the financial system.

Speaking during an engagement session with journalists, Oyedele stressed that despite misconceptions circulating on social media, neither the Federal Inland Revenue Service (FIRS), the Central Bank of Nigeria (CBN), banks nor any government agency can unilaterally withdraw funds from personal or business bank accounts.

Oyedele, while noting that false narratives could lead to panic withdrawals, and destabilise the economy, stated that “nobody will debit the accounts. Even if you have N1 billion in the account, nobody can debit your bank account.”

According to him, under the new tax law, Nigeria’s tax administration process requires notification, assessment, objection, and judicial review before any enforcement action can be taken.

According to him, the only scenario where the law permits the government to request bank deductions is in extreme cases, involving large, tax debts that have gone through all legal channels. “It will not apply to anyone that I know of in Nigeria,” he added, emphasising that the provision exists merely as a safeguard, not a routine tool.

Oyedele also clarified that the requirement for Tax Identification Numbers (TINs) in bank accounts is not new, as it dates back to the Finance Act of 2020.

According to him, what the new law has done, is raise the reporting threshold from N10 million to N25 million, equivalent to about N100 million annual turnover, effectively excluding 98 per cent of bank account holders.

“No one has the power to debit your account. The law has what is called power of substitution. If someone owes huge tax, goes through all legal process, refuses to pay, and the court says pay, in extreme cases the government can write to the bank. That is the extreme use. It will not apply to anyone I know in Nigeria. But you cannot remove that power from the law because it may become necessary. The message is: nobody is taking any amount from their bank accounts, whether 50k or 50 million.”

Oyedele maintained that the reforms were designed to simplify taxation, strengthen compliance, expand the tax net, and support long-term economic stability. He stated that Nigeria has “a fantastic opportunity for an economic reset starting next year,” anchored on improved purchasing power and cost-push inflation dynamics.