Taiwo Oyedele and Tax act
Taiwo Oyedele, chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, has been caught in a web of lies concerning the new tax law that empowers the Federal Inland Revenue Service (FIRS) to seize funds, confiscate and sell assets and properties belonging to Nigerians whom the FIRS finds to have run afoul of tax laws.
Mr Oyedele, who spoke on Arise TV on the morning of Wednesday, 24 December, denied the content of Sections 61 and 43 of the controversial tax law recently passed by the National Assembly and assented to by President Bola Tinubu.
Checks by Peoples Gazette show that the tax tsar misled the public on national television, falsely claiming that the FIRS must secure a court order before enforcing the seizure of citizens’ assets and funds held in bank accounts if they’re found wanting.
“It has to go through stages of the court to finally establish that that tax is indeed due and payable, before you can now say ‘I gave you notice to pay within 30 days, but you refused, I’ll write to banks, (sic) do you have this guy’s account, and does he have money inside? So, that process and that provision is in the current law,” Mr Oyedele claimed.
Mr Oyedele’s statement contradicts the provisions of Section 61, which explicitly grants the FIRS the power to seize and sell citizens’ assets without first obtaining a court order.
According to Section 61, which centres on the power to distrain, the law states:
“Where an assessment has become final and conclusive and a demand notice has been served on a person or company, or on the person or company in whose name that person is chargeable and the payment of the tax is not made within the time specified by the demand notice, the relevant tax authority may in the prescribed form, for the purpose of enforcing payment of the tax due – (1) (a) distrain that person or corporate body by their goods, chattels, bonds or other securities; or (b) distrain any land, premises, place or any asset in respect of which that person or corporate body is the owner, and recover the amount of tax due by sale of anything so distrained.
“(2) The authority to distrain under this section shall be in the form contained in the Third Schedule to this Act and such authority shall be sufficient warrant and authority to levy by distrain the amount of any tax due.”
Section 61(3) further empowers duly authorised FIRS officers, with police assistance if required, to break open properties in the daytime and seize assets:
“For the purpose of levying any distrain under this section, any officer duly authorised by the relevant tax authority may execute any warrant of distrain, and if necessary, break open any building or place in the daytime for the purpose of levying such distrain, and the relevant tax authority may call for police assistance and the police shall, when so required, aid and assist in the execution of any warrant of distrain and in levying the distrain.”
The law further states in Section 61(4) that assets may be kept for 14 days and thereafter sold without a High Court order:
“Assets distrained by the Service under this section may, at the cost of that person or corporate body, be kept for 14 days and at the end of that time, if the amount due in respect of the tax, cost and charges incidental to the distrain are not paid, they may, subject to subsection (7), be sold without an order of the High Court.”
Sections 61(5–7) outline how proceeds from such sales are to be applied, including refunds of any balance within 90 days.
Although the law notes in Section 61(8–9) that immovable property (such as houses) can only be sold with a High Court order, the statute still permits seizure without court approval and grants owners only 14 days to file objections or appeals.
“(9) In exercise of the powers of distrain conferred by this section, the person to whom the authority is granted under subsection (3) may distrain all assets, goods, chattels and effects belonging to the debtor wherever the same may be found,”
“(10) This provision shall also apply in the case of recovery relating to tax evasion and proceeds of crime where the offender cannot be found.”
During the broadcast, Arise TV presenter Rufai Oseni challenged Mr Oyedele on the matter. Responding, the tax tsar said: “Before they get to that point, it is a very elaborate process. You will not go through that process to collect N1 million tax, it is not worthwhile; which means the people they’re trying to create the fear in their hearts are not going to ever have to worry about this provision.”
The Gazette reviewed the law and found that the FIRS will commence the confiscation and sale of assets belonging to Nigerians deemed culpable of breaching tax laws from January 2026.
Section 43, titled “Assessments to be final and conclusive,” provides the statutory basis for FIRS recovery of unpaid taxes once an assessment is determined as final. The section states in part:
“Where the full amount of tax in respect of any final and conclusive assessment is not paid within the period prescribed in this Act, the provisions relating to the recovery of tax and to any penalty under Sections 65 and 67 of this Act shall apply to the collection and recovery.”
Messrs Tinubu and Oyedele have faced sustained criticism from citizens and analysts, who argue that the new tax law was passed and assented to as a tool to extract revenue from Nigerians, many of whom live below the poverty line.
Mr Oyedele did not respond to enquiries from The Gazette seeking clarification on Sections 61 and 43 after screenshots were shared with him via WhatsApp on Wednesday. As of press time, he had yet to issue a response.
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