Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr. Taiwo Oyedele, has called for the prompt enactment of critical tax reform bills by mid-2025, stressing that delays could hinder Nigeria’s economic recovery and growth.
Speaking at the recent Annual Roundtable Summit of the Covenant Community Groups in Lagos, Mr. Oyedele criticised Nigeria’s tax system as outdated and a significant impediment to progress, requiring urgent modernization.
Delivering a keynote address titled: ‘May Nigeria Work for Me,’ Mr. Oyedele emphasised that economic growth, rather than increased taxation, is the key driver of government revenue. He urged for inclusive reforms that address disparities in income and inflation to ensure equitable benefits for all Nigerians.
He described Nigeria’s current tax framework as inefficient, comparing it to “running a race in a 1960s car against Ferraris.” He pointed to the economic vulnerabilities created by past fuel subsidy policies, which depleted the nation’s resources and pushed the economy to the brink. Specifically, he noted how the Nigerian National Petroleum Corporation exhausted equity crude and profit oil to fund subsidies, further straining the economy.
Without swift reforms, Mr. Oyedele cautioned that Nigeria risks experiencing economic instability similar to Zimbabwe’s hyperinflation crisis. However, he expressed optimism about the country’s prospects if the necessary changes are implemented on time, forecasting reduced inflation, stable exchange rates, and increased industrial output.
To support economic growth, he proposed several initiatives aimed at human capital development and boosting local industries. He advocated for interest-free education loans and stipends for underprivileged students, emphasising the need to make education more accessible and inclusive. According to him, better remuneration for lecturers would attract top talent and improve the quality of teaching.
He also called for the establishment of consumer credit systems to enable Nigerians to afford locally manufactured goods and own homes through flexible repayment plans. Additionally, he highlighted the importance of skills development programs tailored to meet societal needs, which would create a more productive workforce.
Mr. Oyedele further urged Nigerians to shift away from speculative financial behaviors and invest in productive ventures. He stressed the need for a collective effort between the public and private sectors to address structural inefficiencies and curb illicit foreign exchange practices.
“Our reforms are designed to reduce pressure on monetary authorities and ensure stability. We are turning the corner, and 2025 will mark the beginning of a new era,” Mr. Oyedele said.
