Tax Reform Anxiety: Oyedele Attributes Public Fear to Poor Tax Awareness

Taiwo Oyedele, the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, has addressed the growing apprehension among Nigerians regarding the upcoming tax reforms slated for implementation in January 2026. According to Oyedele, the widespread “panic” is not rooted in the reforms themselves, but rather in a significant lack of public awareness and education regarding the existing tax legislation. He believes that many Nigerians are encountering fundamental aspects of the country’s tax requirements for the very first time, leading to misplaced anxiety about the nature of the new reforms.

Speaking to the media over the weekend, Oyedele noted a striking discovery during the committee’s outreach: the public’s low level of tax literacy. He pointed out that much of the information currently generating public concern—including the requirements for a Tax Identification Number (TIN), the broader concept of a Taxpayer Identification Number, and banks’ obligations to submit monthly reports on individual accounts—is not novel. Instead, this information has been legally enshrined since the passage of the 2020 Finance Act.

“But because the level of tax awareness in Nigeria is so poor, people are finding out so many things for the first time,” Oyedele remarked. He stressed that the general public incorrectly assumes that these pre-existing stipulations are being introduced as fresh, punitive measures by the new tax framework. “They just assume that the new tax law is introducing them. This one is actually not,” he clarified, separating the contents of the existing law from the objectives of the proposed reforms. His primary argument is that a better-informed populace would not be panicking, as the structures that cause the most fear are already legally operative, albeit largely unenforced or poorly communicated.

A major source of public panic stems from the fear that banks or government agencies could arbitrarily withdraw funds from private accounts to settle tax liabilities. Oyedele sought to unequivocally debunk this fear, assuring the public that no bank, government body, or private authority possesses the arbitrary power to debit money from an individual’s account, regardless of the amount held. He meticulously outlined the exhaustive legal process that must precede any attempt to recover unpaid taxes.

“Even if you have N1 billion in the account, nobody can debit your bank account,” Oyedele insisted. He described a multi-step procedure that includes official written notice to the defaulter, an opportunity for the individual to respond, the issuance of a final assessment, and the right to challenge that assessment in court. He summarized the sequence, noting that it is a “long process.” This detailed clarification was intended to contrast the lengthy legal safeguards with the public’s simplistic fear of instant, unilateral account withdrawal.

Oyedele acknowledged the legal concept that drives this fear, explaining that the law contains a provision known as the “power of substitution,” which is analogous to a “garnishee order” in other jurisdictions. While this power exists in law, he stressed that its application is strictly governed by due process and cannot be executed spontaneously without judicial or quasi-judicial authorization, further highlighting that the power to debit accounts is not discretionary or arbitrary.

His public intervention is a direct response to the atmosphere of uncertainty surrounding the January 2026 implementation of the 2025 Nigeria Tax Administration Act. The anxiety was heightened by an earlier statement from the Chairman that all taxable Nigerians would be required to possess a Tax Identification Number (TIN) to operate their bank accounts—a requirement that, while seemingly new to many, he now confirms has been the law for some time. The committee’s challenge is now twofold: to finalize the substantive reforms and simultaneously bridge the massive information gap that has allowed fear and misinformation, rather than facts, to define the public discourse on Nigeria’s tax environment. The success of the reforms, Oyedele implies, hinges as much on effective public enlightenment as on the legal drafting itself.