FG Introduces New Tax Enforcement System With Direct Bank Debit Option

Nigeria’s Tax Reform Chairman, Taiwo Oyedele, has announced a new tax enforcement framework that will empower the Federal Government to deduct outstanding taxes directly from citizens’ bank accounts once all legal procedures are completed.

He explained that the system will analyse various personal data points — including bank transactions, travel records, electricity consumption, mobile phone usage, payment cards, and shopping receipts — to assess whether an individual’s declared income matches their lifestyle.

Anyone who reports low earnings but maintains high spending patterns will be flagged for further review. Beginning in 2025, the government will be able to recover unpaid taxes through direct bank debits.

Oyedele emphasized that the policy is aimed at high-spending individuals, not low-income earners. However, the development has sparked widespread concern among Nigerians, prompting many to raise critical questions about privacy and accountability.