Taiwo Oyedele, the chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, has assured Nigerians that the new tax reforms will not lead to automatic debits from bank accounts, regardless of transaction amounts or transfer descriptions.
Oyedele gave the assurance on Tuesday while speaking on Channels Television’s end-of-year special, amid widespread concerns that the reforms could empower tax authorities to directly deduct funds from individuals’ bank accounts.
“Nobody will debit your account. Any amount of money you transfer, whether it is one billion or one thousand, it doesn’t matter how you describe it. Nobody will debit your bank account,” Oyedele said.
He explained that no tax authority anywhere in the world has the capacity to pursue every individual, noting that enforcement efforts are usually targeted at high-income earners, not average or low-income bank users.
Oyedele attributed much of the opposition to the reforms to misinformation, arguing that many of those resisting the policy are not within the income bracket affected by the changes.
“The people fighting us the most are people who don’t even have one million naira in their bank account,” he said, citing data from the Nigeria Deposit Insurance Corporation (NDIC) indicating that about 98 percent of bank account holders have less than ₦500,000 in their accounts.
According to him, wealthy individuals who stand to be affected by the reforms have been using misinformation to mobilise ordinary Nigerians to oppose policies that are actually designed to protect them.
“We underestimated how rich people can manipulate the average person to fight battles on their behalf, even against their own interests,” Oyedele said.
He also accused some high-earning content creators of opposing the reforms to avoid paying taxes on substantial incomes, while spreading false claims about bank account debits to stir public fear.
Self-Declaration, Not Bank Deductions
Oyedele clarified that the reformed tax system is based on self-declaration, with individuals expected to disclose their income at the end of the year and pay taxes accordingly. Those exempt from taxation, he added, will only be required to declare their status.
He said the reforms are aimed at simplifying the tax process, making it more progressive and ensuring that the burden does not fall disproportionately on vulnerable Nigerians.
The reassurance comes amid confirmation by President Bola Tinubu that the new tax laws will be implemented as scheduled, despite calls from critics for a suspension.
The President has maintained that the reforms are a once-in-a-generation opportunity to build a fair and competitive fiscal system and are not intended to impose additional hardship on Nigerians.