LAGOS – The Lagos Internal Revenue Service (LIRS) has triggered widespread apprehension with a notice stating its legal authority to recoup unpaid taxes by directly debiting personal bank accounts. This move, based on Section 60 of the Nigeria Tax Administration Act, has caused panic among residents and drawn sharp criticism from financial experts.
The clarification from the Presidential Fiscal Policy and Tax Reforms Committee, led by Taiwo Oyedele, has done little to quell fears. While stating that such “power of substitution” is a last resort requiring court authorization, this conflicts with earlier assurances that no government body could debit personal accounts.
Economic experts have voiced serious concerns. Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise, warned the policy could “undermine public confidence” and lead to a “financial inclusion problem.” He emphasized that funds in an account may not belong to the account holder, potentially belonging to contractors or suppliers.
Former CIBN President Mazi Okechukwu Unegbu described the move as “dangerous,” warning it could “create long-term instability” and damage the credibility of the tax system and financial sector if not strictly governed by due process.
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Disclaimer: This report details public statements from tax authorities and independent economic analysts. The policies and their implementation are subject to legal processes and official clarification.
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