Taiwo Oyedele, the chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, said in his address to President Bola Tinubu and some key members of the president’s inner circle that his committee’s fiscal reform will be focused on achieving the Sustainable Development Goals and reducing multidimensional poverty, among others, in the country.
Oyedele made this known on Tuesday at the presidential villa in Abuja when outlining the committee’s objectives, which he believes, when properly followed, could reshape Nigeria’s economic landscape.
“Ensuring responsible energy transition and a coordinated strategy to elevate revenue reporting and quality of spending,” he mentioned as other objectives the committee will be focused on achieving.
Earlier in his speech, he mentioned the need for the government to establish a conducive policy environment that has the potential to attract global businesses and position the country as a hub for research and development, technology, and innovation, as well as a headquarters location and a financial and shared services centre for the continent.
Arriving at those conclusions and policy directions for the government, Oyedele, who has more than 20 years’ experience in fiscal policy formulation and tax reforms on the African continent, identified key problems that have been a bottleneck to efficient tax administration and poor revenue collection in the country.
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Oyedele identified outdated laws and the multiplicity of taxes as one huge problem that needs to be corrected if the country is to make significant progress.
He said, “Many of our existing laws are outdated; hence, they require comprehensive updates to achieve harmonisation and address the multiplicity of taxes, and remove the burden on the poor and vulnerable while addressing the concerns of all investors, big or small.”
He also pointed out the shortcomings in tax administration, citing unregulated collections by untrained officers, particularly at the local government level. Oyedele stressed the urgency of enhancing revenue generation, as Nigeria’s revenue falls below African standards while collection costs remain high due to multiple taxes and fragmented reporting procedures.
“The burden of tax falls heavily on those who comply, while those who evade often get away with little or no consequences. We need to change this,” Oyedele proclaimed.
However, Oyedele also expressed optimism in the face of these challenges, calling them an opportunity to create a positive impact. “We have the chance to revamp our tax policies for a more equitable system, modernise our laws to be adaptable and forward-looking, revitalise our revenue administration, enhance transparency in revenue reporting, and exercise prudence in our spending.”
He stressed that any fiscal and tax measures by the government should ease the impact of rising prices, reduce pressure on the naira, and encourage job growth in the digital economy.
