Hot Source•Oyedele seeks fiscal transformation, wants national interest to override sectional self-interest in policy-making
James Emejo in Abuja
Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, yesterday, disclosed that the four key tax reform bills had been transmitted to President Bola Tinubu for his assent.
The development marks a major milestone in efforts to reform both the tax and fiscal environments.
Edun said the bills were formally delivered to the president by the National Assembly on Tuesday.
He gave the hint during the 50th birthday lecture of Chairman, Presidential Committee on Fiscal Policy and Tax Reforms, Mr. Taiwo Oyedele.
He said, “It was, I think, yesterday (Tuesday) that it was finally delivered to Mr. President by the National Assembly for him to sign off on the four tax reform bills,” describing the moment as critical in the current administration’s reform agenda.
The minister said the bills, once signed into law, were expected to significantly improve the efficiency and fairness of Nigeria’s tax system, while nearly doubling the country’s tax-to-GDP ratio, which remains among the lowest globally.
He said, “There is still hard work to be done in efficiently implementing the bills that have been passed. But they promise to change the fiscal landscape.”
The minister praised Tinubu’s persistence in steering the tax reform process through challenging times.
“Mr. President knew the value of those four tax reform bills and kept going through thick and thin, through turbulence and through wind. He just kept going, supporting you (Oyedele),” Edun stated.
According to him, the fiscal reforms championed by the committee are central to Tinubu’s goal of lifting millions of Nigerians out of poverty.
He pointed to strategic areas, such as agriculture, infrastructure (including digital infrastructure), and access to finance as sectors targeted for inclusive growth.
Edun credited Oyedele’s expertise and communication skills for making the reforms broadly accessible.
He said, “You had the grace, the gift of being able to take a complex subject, and time after time, tirelessly break it down and simplify it for all types of audiences—the high, the low, the knowledgeable, the less knowledgeable.
“And that’s why we have today success in terms of a proposal for proposed bills that are now ready for Mr. President to sign into law.”
The minister said the reforms will introduce a fairer, more transparent tax system aligned with global best practices.
He said, “They will give greater fairness. They will give clarity. They will give ease of administration, best practice around the world. And ultimately, they’ll give more revenue for government so that the legitimate demands of our people can be met in social services, health, education, and basic infrastructure.”
The minister referenced Oyedele’s impact on public attitudes toward taxation.
He said, “You went out and you saw and heard from people that they didn’t feel they were in any way obliged to pay tax. You have worked tirelessly to help change people’s perspective on that.”
He added that voluntary compliance played a crucial role in the effectiveness of tax policies.
In his remarks, Oyedele offered a critical perspective on the country’s economic environment, adding that regulatory bottlenecks and tariff burdens are equivalent to granting tax waivers to a few, while discouraging investment and productivity.
He said, “Addressing our tariffs and regulatory hurdles is the equivalent of granting waiver from all income and consumption taxes. We also need fiscal reforms to complement a strong and stable Naira, such as payments of all taxes in Naira.”
He maintained that the work of the committee was far from finished, and called for a downward revision of corporate tax rates to attract new investments and stimulate economic expansion.
Oyedele warned that high tax rates, especially in an inflationary environment, amounted to taxing capital instead of profit.
He said the country must also resolve issues of regulatory overreach and embrace digitisation as part of its economic reform package.
“We must refine our tariff system to reduce the rates on raw materials and intermediate products, which currently are twice the average for sub-Saharan Africa,” Oyedele said.
He cautioned the elite to resist the temptation of simplistic solutions in public policy debates.
He said, “The elite must apply more intellectual rigour in policy debates, challenge long-held theoretical beliefs and question assumptions within context. We must avoid crowd-pleasing analysis because after the applause, the pain remains.”
Offering practical advice to government, Oyedele suggested that public institutions should only carry out tasks that the private sector could not do, and should do so efficiently, collecting the least amount of tax necessary to meet basic public service standards.
He also spoke to the need for quality, non-inflationary spending by government, urging greater prudence and planning in fiscal policy implementation.
According to him, ordinary Nigerians must also rise to the responsibility of civic participation.
He said, “The people must seek first to understand—ignorance compounds vulnerability and steals opportunities. We must think independently, ask questions, engage, and criticise constructively with the sole aim to build, not tear apart, our country.”
The lecture served as both a personal tribute to Oyedele and a broader reflection on Nigeria’s path to sustainable development through fiscal responsibility, tax reform, and inclusive governance.
Oyedele called for lower corporate tax rates, in addressing regulatory overage, and refining tariff systems to stimulate investment and economic growth.
He highlighted the need for an orderly tax system to avoid chaotic taxes that disproportionately impact the poor.
He said the tax reform measures included full income tax exemption for over a third of workers, higher exemption thresholds for small businesses, and zero-rating essential consumptions.
He also emphasised the importance of credible data, inclusive policies, and investing in people. He highlighted the need to refine the tariff system to reduce rates on raw materials and intermediate products to lower input costs.
Oyedele said, “We have priority sector incentives, boosting exports and providing tax relief to prevent public transition for Nigerian businesses operating internationally. Others are changes to income class laws to attract remote work opportunities, enabling Nigerian youths to thrive in the digital economy.”
He stressed the need to make policies for a strong and stable Naira, such as allowing businesses to pay taxes in Naira, despite having a comparative trade balance.
He lamented that the tax system in Nigeria suffered from archaic laws, complex administrative structure, low tax morale, and widespread evasion.
