Taiwo Oyedele, chairman of the Presidential Fiscal Policy and Tax Reforms Committee, has said that widespread anxiety over Nigeria’s new tax reforms is largely driven by poor public understanding of existing tax laws, not by new powers being introduced.

Speaking to journalists over the weekend, Oyedele explained that many Nigerians are encountering provisions they have never paid attention to before. According to him, this sudden discovery is being mistaken for sweeping changes that will take effect in January 2026.

Old rules, new attention

Oyedele noted that several issues causing concern, including the use of Tax Identification Numbers, reporting requirements linked to bank accounts, and other compliance measures, are not new. He said most of these provisions are already contained in the Finance Act of 2020.

According to him, the problem lies in the country’s historically low level of tax awareness.

“Because tax awareness in Nigeria is very poor, people are finding out many things for the first time,” Oyedele said. “They assume the new tax law is introducing these measures, but that is not the case.”

He added that the reforms have triggered more public discussion, which has brought long standing rules into the spotlight.

No automatic access to bank accounts

Addressing one of the most common fears, Oyedele dismissed claims that government agencies or banks can arbitrarily withdraw money from individuals’ accounts under the new tax framework.

He stressed that even high account balances do not give authorities the right to debit accounts without due process.

“Even if you have N1 billion in your account, nobody can just debit it,” he said. “There is a process. If taxes are unpaid, you are written to. You respond. There is an assessment. If it is disputed, it goes to court. It is a long process.”

Oyedele explained that the law only allows what is known as the power of substitution, which in other jurisdictions is similar to a garnishee order. He said this mechanism still requires strict legal steps and does not permit sudden or secret deductions.

Why fears are spreading now

Tax analysts say the concern reflects a broader gap in public communication. According to policy experts, many Nigerians engage with tax rules only when enforcement increases or when reforms are announced, leaving room for misinformation to spread.

Meanwhile, civic groups have called for clearer explanations from government ahead of the January 2026 start date. They argue that better outreach could reduce panic and improve voluntary compliance.

Looking ahead to 2026

Oyedele’s comments come as preparations continue for the implementation of the 2025 Nigeria Tax Administration Act, scheduled to take effect in January 2026. The law is expected to streamline tax administration and improve revenue collection, but officials say its success will depend heavily on public trust and understanding.

As the rollout approaches, the committee has urged Nigerians to seek information from credible sources and to separate existing legal provisions from genuinely new reforms.