Nigerians are grappling with fresh controversy over the country’s tax laws following a notice by the Lagos Internal Revenue Service (LIRS) asserting its authority to recover unpaid taxes through direct bank debits. In the notice seen by DAILY POST at the weekend, LIRS cited Section 60 of the Nigeria Tax Administration Act as empowering the agency to recoup outstanding tax liabilities from taxpayers’ bank accounts. Neither the Nigeria Revenue Service nor the Presidential Fiscal Policy and Tax Reforms Committee has formally debunked the report.
However, the chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, described the measure as a last resort. Referring DAILY POST to a statement on his X handle, Oyedele explained that the “power of substitution” allows tax authorities to direct a third party, such as a bank, to remit funds belonging to a defaulting taxpayer only after a final and established tax liability remains unpaid. He stressed that the process is subject to due process and can only be invoked after all legal and administrative remedies, including court appeals, have been exhausted.
Despite the clarification, concerns persist, particularly as the position appears to conflict with earlier assurances that the new tax laws do not empower any tier of government to debit personal accounts arbitrarily. Reacting to the development, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, called for clearer explanations to reconcile the conflicting statements. He warned that the uncertainty has already triggered anxiety among Nigerians, with reports of individuals withdrawing funds from banks over fears of arbitrary account debits.