Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr Taiwo Oyedele, on Monday said Nigeria has shifted from a phase of rapid economic decline to one of stability, growth and renewed investor confidence.
Oyedele attributed the turnaround to ongoing fiscal and monetary reforms, noting improved coordination among key policy institutions and early signs of progress “within a relatively short period.”
He spoke at the opening of a two-day National Stakeholders’ Discourse on “Enhancing Fiscal Efficiency and Revenue Growth under the Nigeria Tax Act, 2025,” organised by the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) in Abuja.
While acknowledging macroeconomic gains, Oyedele urged policymakers to ensure such progress translates into tangible benefits for citizens at the household level.
He said a major outcome of the reforms was the redesign of Nigeria’s tax system to stop “taxing poverty,” adding that the new tax laws, expected to take effect next year, would ease the burden on small businesses and ordinary Nigerians in line with President Bola Tinubu’s directive to de-risk the business environment.
Oyedele also addressed criticisms surrounding the Memorandum of Understanding signed between the Federal Inland Revenue Service (FIRS) and France’s Direction Générale des Finances Publiques (DGFiP), stressing that the agreement focused solely on technical assistance and capacity building.
“Of all the countries that we studied, France is the most efficient in collecting taxes in the whole world,” he said. “They lead the OECD… And this tax harmonisation thing we are trying to do; they did it a long time ago.”
He dismissed fears of data privacy breaches, asking: “Does it not make sense to learn from them? Who will collect data to another authority? Why would anybody do that?”
“Nigeria is signatory to the International Exchange for Information where there are clear protocols for you to share data of just one taxpayer let alone the whole country,” Oyedele added, urging Nigerians not to jump to conclusions that could undermine reform efforts.
According to him, the reforms are anchored on fairness, efficiency, growth and trust. “They are not perfect, but they represent a critical step toward building a tax system that works for the people and supports sustainable national development,” he said.
He noted that under the Voluntary Assets and Income Declaration Scheme launched in 2017, about 96 per cent of personal income tax came from formal sector workers, describing the situation as unjust in a country with widespread poverty.
“When people are hungry and hopeless, they cannot be rational. They become easy recruits for instability and insecurity,” he said, adding that addressing inequality remains a work in progress requiring sustained reforms.
Oyedele cautioned that macroeconomic indicators such as strong foreign reserves or moderating inflation mean little if citizens cannot meet basic needs.
“Saying that foreign exchange reserves are strong or that inflation is moderating means little to a woman who cannot afford bread or pay her children’s school costs,” he said.
He stressed that policymakers must focus on accountability and prioritisation of public spending. “We must focus on what matters most to the people: roads that connect farms to markets, primary schools with roofs, chairs, and qualified teachers, and health centres staffed with trained doctors and nurses.”
Oyedele also emphasised evidence-based policymaking, warning against emotional policy choices. “Policies based on emotion may make us feel good temporarily, but they do not deliver lasting progress,” he said.
He clarified that revenue sharing in Nigeria is not charity. “What is shared is not ‘federal allocation’ but ‘federation revenue’. It belongs to all tiers of government. Centralised collection is simply a matter of efficiency, not generosity.”
In his remarks, RMAFC Chairman, Dr Mohammed Shehu, described the engagement as timely, noting that the Nigeria Tax Act, 2025, will take effect on January 1, 2026.
Shehu said the Act harmonises fragmented tax laws, reduces duplication and obsolete provisions, and improves the ease of doing business. He added that recent reforms had increased federation account inflows through stronger audits, digital tracking and improved coordination among revenue agencies.
Oyedele, however, cautioned against the proliferation of taxes. “Experience shows that efficiency, not creativity in inventing new taxes, is what delivers results,” he said, noting that over 60 different taxes across government tiers have created confusion and hardship.
He maintained that states already control significant revenue sources and that the real challenge lies in efficiency, accountability and value maximisation, particularly at the local government level.
“At the heart of tax reform is trust,” Oyedele said. “When citizens do not see their taxes translated into public value, resistance grows. Trust can only be rebuilt when what the government says aligns consistently with what people experience.”
