The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has clarified that Nigerian tax authorities cannot debit taxpayers’ bank accounts for tax defaults without first obtaining court rulings, dismissing widespread fears of arbitrary deductions under the new tax laws.
Oyedele gave the clarification on Wednesday during an interview on Arise Television’s Morning Show, amid public controversy over claims that recently gazetted tax laws permit tax officials to access bank accounts without judicial oversight.
According to him, any attempt to recover unpaid taxes through bank accounts must follow a clearly defined legal process and can only occur after the tax liability has been conclusively determined by the courts.
“Before you get to this power of substitution, that tax liability must be final and conclusive,” Oyedele said. “You have to go through the entire process, including the courts.”
He explained that the process begins with a tax assessment issued to the taxpayer, followed by an objection stage. If the dispute is not resolved, the matter proceeds to the Tax Appeal Tribunal, then to the High Court, the Court of Appeal and, ultimately, the Supreme Court.
“That is when the tax becomes final and conclusive,” he added. “That is when the tax authority can take enforcement action.”
Oyedele further noted that the so-called “power of substitution,” which allows tax authorities to recover unpaid taxes from bank accounts, is not a new provision and has existed under Nigeria’s tax framework for years.
“That power is already in the current law,” he said. “It has always been there.”
However, he cautioned against misinterpretations that could create panic or undermine confidence in the banking system.
“We must be careful not to generate headlines that suggest money can be taken from bank accounts arbitrarily,” he said, warning that such narratives could trigger unnecessary fear.
Oyedele also dismissed allegations that the gazetted tax laws were secretly altered to remove the role of the courts, describing such claims as unsubstantiated.
“I don’t think it is productive to discuss alleged alterations when there is no evidence of where they came from,” he said, adding that some of the provisions being circulated do not exist in the official laws.
He specifically rejected claims that taxpayers are required to make deposits before filing appeals, stating that such provisions are not contained in the Nigeria Tax Administration Act.
While acknowledging public concerns, Oyedele said confusion arose partly because a harmonised version of the tax reform bills passed by the National Assembly had not yet been officially published.
“If the harmonised version had been published, many of these allegations would not have arisen,” he said.
Addressing calls for a suspension of the new tax laws, Oyedele said such a move would be impractical, noting that aspects of the reforms, including the establishment of the Nigeria Revenue Service, are already in effect.
“In tax matters, interrupting revenue generation even for a short period can create serious problems,” he said.
He urged Nigerians to read the tax laws in their entirety rather than relying on selective excerpts, stressing that partial interpretations have fueled unnecessary anxiety.
Hobnob News reports that the clarification comes as the Federal Government continues to push for comprehensive tax reforms aimed at improving revenue generation while maintaining due process and the rule of law.
