Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, has debunked claims that the new tax reform bills are designed to generate more revenue for the government.
Speaking during a Town Hall meeting on Channels Television on Monday, Oyedele emphasized that the primary goal is to revive Nigeria’s struggling economy.
According to him, the reforms aim to create shared prosperity and not to burden citizens with more taxes.
“The objective of these reforms is to fix the economy in a way that there can be shared prosperity,” Oyedele said.
He described the current fiscal system as a significant obstacle to economic growth.
“Our fiscal and tax system is like the knee on the neck of our economic prosperity,” he added.
Borno Governor Leads Opposition to Tax Bills
In recent weeks, the proposed tax reforms have sparked a standoff between state governors and the Federal Government.
Borno State Governor, Prof. Babagana Zulum, has been vocal in his opposition to the bills.
On Sunday, Zulum urged Northern stakeholders to reject the bills, warning that they could harm the region’s economy.
Governors from the Northern States Governors Forum (NSGF) have also demanded more consultations.
They argue that the bills may centralize revenue collection and erode state autonomy.
Misconceptions About the Bills
Oyedele, however, dismissed many of the criticisms as misconceptions.
He noted that several critics had not thoroughly examined the contents of the bills.
“There are many misconceptions being peddled about the bills,” Oyedele stated.
He urged Nigerians to understand the reforms’ true purpose: to foster economic growth.
“If businesses are growing and individuals are thriving, taxes will naturally follow,” he explained.
He stressed that the focus is on creating a business-friendly environment that promotes expansion and prosperity.
A Race Against Time
Oyedele also addressed concerns about the speed at which the reforms are being pushed.
He acknowledged that the process is fast-paced but necessary given Nigeria’s economic challenges.
“We knew Nigeria had no luxury of time,” he said.
The goal, according to Oyedele, is to complete the reforms within a year.
“We have tax laws that are very old and no longer fit for purpose,” he noted.
Many of Nigeria’s tax laws date back to colonial times and need urgent updates, Oyedele explained.
The committee saw the reforms as an opportunity to rewrite outdated laws to reflect modern realities.
Relief for Low-Income Earners
Oyedele highlighted provisions in the bills aimed at protecting low-income earners.
“For households and individuals, including our young population, these bills seek to exempt low-income earners completely from tax,” he revealed.
The exemption would apply to those earning less than ₦83,000 per month or ₦1 million annually.
This measure is designed to ease the financial burden on struggling Nigerians.
A National Effort for Prosperity
Oyedele underscored the importance of collaboration to ensure the success of the reforms.
He urged all stakeholders to work together to drive Nigeria’s economic revival.
“The work we’re asked to do for our country is an enormous task, but it is critical,” he said.
The reforms, according to Oyedele, are a crucial step toward achieving sustainable growth and reducing poverty.
