The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms in Nigeria, Taiwo Oyedele, believes that Nigeria can significantly boost its revenues without imposing new taxes.
Instead, he calls for better tax administration and the use of technology to close the estimated 20 trillion naira tax gap.
In an interview with Channels TV’s Politics Today program on Friday, Oyedele stressed that the committee’s work focuses on transformative fiscal reforms driven by evidence and broad consultation.
“We have done a lot of work, on a large and far-reaching scale,” he added. “We have undertaken wide-ranging consultations, including with governors, the Federal Revenue Services, and primary sector stakeholders,” he said.
The Presidential Commission on Fiscal and Fiscal Reforms was established to review and reform Nigeria’s fiscal and tax policies, with the aim of enhancing efficiency, increasing revenues, promoting economic growth, and reducing poverty.
The committee’s objectives include reviewing tax laws, identifying new sources of revenue, developing a national fiscal policy, harmonizing tax policies, improving tax administration, enhancing transparency, encouraging economic diversification, and encouraging private sector investment.
The work of the committee is expected to lead to a more effective fiscal and tax system, and improve the overall welfare of Nigerians.
Regarding the pace of financial reforms compared to monetary policy, Oyedele explained: “Financial reform cannot be as fast as monetary policy. It requires evidence-based policies and extensive consultations to ensure accurate diagnosis and effective prescriptions.”
He also revealed that some recommendations, including a new tax system that provides relief to small businesses and eases capital controls, have already been implemented.
The measures, signed by Finance and Economy Ministers Wale Eadon, aim to stimulate growth amid current economic challenges.
Oyedele expressed optimism about the possibility of generating more revenue without increasing taxes.
“We have over 60 different taxes and fees but we have not collected enough to adequately fund infrastructure such as roads,” he noted.
He added, “Instead of imposing new taxes, we call for unifying and standardizing existing taxes.”
Oyedele stressed the importance of leveraging data intelligence and technology to bridge tax gaps and ensure compliance.
“By identifying those who should pay but do not, we can double our revenues within two to three years,” he stressed.
He also stressed the need to exclude small and medium-sized enterprises and low-income people to avoid burdening the most vulnerable groups in society.
Oyedele affirmed his confidence in Nigeria’s ability to mobilize revenues sustainably.
“We believe in our medium to long term approach by simplifying taxes and enhancing compliance through modern methods, Nigeria can unleash its economic potential without burdening its citizens,” he said.
The committee’s proposals are expected to undergo further legislative processes in the coming weeks, with the aim of paving the way for a more robust fiscal policy framework in Nigeria.