In a startling revelation, Taiwo Oyedele, the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, exposed the considerable burden on Nigerians who currently contend with over 200 unofficial taxes. Oyedele disclosed this information during the Africa Trade Summit and Investment Summit organized by BusinessDay, themed “Reimagining Economic Growth in Africa.”
Addressing attendees at the summit, Oyedele underscored the committee’s ambitious objective to increase the tax-to-GDP ratio from 10% to 18% within the next two to three years—all without introducing new taxes. He shed light on the ongoing efforts to harmonize the existing taxes, stating, “We are harmonizing the number of taxes officially 60, unofficially over 200 across all levels of government combined.”
Additionally, Oyedele outlined the committee’s plans to modernize and update laws to align with contemporary trends, envisioning a more efficient tax system for the country.
In the pursuit of positioning Nigeria as the top destination in Africa, Oyedele shared the government’s vision to become the preferred choice for retirement, creative economy, technology research, and development. He articulated, “We want to be the preferred location in Africa and a competitive one globally. We want companies to start putting their headquarters here so that the C-suite will be here spending their money and booming our economy. And also, the preferred land for technology, research and development, energy transition, retirement, business outsourcing, and creative economy.”
Highlighting the committee’s focus on efficient fiscal governance, revenue transformation, and inclusive economic growth, Oyedele outlined plans to establish a spending framework, urging the country to reprioritize its goals. He emphasized the need to address fundamental issues, stating that if millions are in poverty without access to basic necessities, priorities such as building international worship centers or airports should be reconsidered.
Oyedele also discussed the committee’s efforts to alleviate the burden on small businesses, which often face multiple taxation challenges from various government levels. Recently, he mentioned the committee’s recommendation to state and local governments to suspend “nuisance taxes” that contribute little to state coffers. Additionally, the committee has drafted a new tax regulation aimed at amending existing laws, fostering a more conducive environment for businesses and individuals alike.
As Nigeria navigates these proposed reforms, the revelations from Oyedele shed light on the complexities of the current tax landscape and the committee’s determined efforts to usher in transformative changes.
Credit: Nairametrics
