The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, , has clarified that Nigerians cannot have their bank accounts debited, frozen, or their property sold simply because they are accused of owing tax.
Oyedele made the clarification during interviews on and later on , following widespread public concern over claims that the new tax laws grant unchecked powers to tax authorities.
According to him, reports suggesting that tax officials can immediately access bank accounts or sell assets once an assessment is issued are misleading and ignore the legal safeguards built into Nigeria’s tax system.
“You don’t just wake up and say somebody is owing tax and take money from their bank account,” Oyedele said. “There is an elaborate process before any enforcement action can happen.”
He explained that the process begins when a tax authority issues an assessment. The taxpayer has the right to object within a specified time. This objection process allows the taxpayer to present arguments and documentation challenging the assessment.
If the tax authority reviews the objection and still refuses to amend the assessment, a formal notice of refusal is issued. According to Oyedele, this triggers the appeal process, which first goes to the Tax Appeal Tribunal.
He added that if the taxpayer is dissatisfied with the outcome at the tribunal, the case can move to the High Court, then the Court of Appeal, and finally the Supreme Court.
“That tax must become final and conclusive,” he said. “It is only after going through those stages that enforcement can begin.”
Oyedele addressed the fear that banks could be ordered to release funds without court involvement, explaining that what many people describe as automatic bank debit is actually known as the power of substitution. He noted that this power is not new and already exists in current tax laws.
Under this provision, a tax authority may require a third party holding money belonging to a taxpayer, such as a bank, to pay the tax owed. However, Oyedele stressed that this can only happen after the tax liability has been fully established through due process.
“It can’t be the tax authority waking up and saying a bank should release money,” he said. “You must go through objections, appeals, and the courts.”
On the issue of selling assets, Oyedele said real property cannot be sold without court involvement. He explained that the courts must first be part of the seizure process before any asset can be disposed of.
He also noted that such extreme enforcement measures are rarely pursued for small tax amounts, adding that it would not be practical or worthwhile to go through a lengthy legal process to recover minor sums.
Oyedele warned that exaggerating enforcement powers creates unnecessary fear among taxpayers and damages trust in the tax system.
“What we are seeing is people taking one sentence from the law and running with it,” he said. “When you read the law as a whole, you see there are protections at every stage.”
He urged Nigerians to rely on verified information and allow ongoing reviews by lawmakers to clarify any concerns surrounding the tax reforms, rather than spreading panic based on unofficial documents.
