The Chairman of Nigeria’s Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, believes that Nigeria can greatly increase its revenue without adding new taxes.
Oyedele suggests that better tax administration and the use of technology to close the estimated N20 trillion tax gap is the solution. Speaking on Channels Television’s “Politics Today,” he highlighted the committee’s focus on major fiscal reforms based on solid evidence and wide consultation.
“We’ve done a lot of work, quite extensive and far-reaching,” he said. “We have consulted widely, including with governors, federal revenue services, and primary sector stakeholders.”
The Presidential Committee on Fiscal and Tax Reforms aims to review and improve Nigeria’s fiscal and tax policies. The goal is to make the system more efficient, increase revenue, promote economic growth, and reduce poverty. Their objectives include reviewing tax laws, finding new revenue sources, creating a national fiscal policy, harmonizing tax policies, improving tax administration, increasing transparency, promoting economic diversification, and encouraging private sector investment.
Oyedele explained that fiscal reforms take time because they need careful planning and consultation to be effective. “Fiscal reform cannot be as rapid as monetary policy. It requires evidence-driven policies and extensive consultation to ensure accurate diagnosis and effective prescriptions,” he noted.
Some recommendations, such as a new tax regime offering relief to small businesses and easing capital constraints, have already been put into practice. These measures, signed by the Ministers of Finance and Economy, Wale Edun, aim to stimulate growth amid current economic challenges.
When asked about generating more revenue without increasing taxes, Oyedele was optimistic. “We have over 60 different taxes and levies but haven’t collected enough to adequately fund infrastructure like roads,” he said. “Instead of introducing new taxes, we advocate consolidating and harmonizing existing ones.”
Oyedele also stressed the importance of using data intelligence and technology to close tax gaps and ensure compliance. “By identifying those who should be paying but aren’t, we can potentially double our revenue within two to three years,” he asserted. He emphasized the need for exemptions for micro-businesses and low-income earners to avoid burdening the most vulnerable in society.
Oyedele is confident in Nigeria’s ability to sustainably increase revenue. “We believe in our approach over the medium to long term by streamlining taxes and enhancing compliance through modern methods, Nigeria can unlock its economic potential without overburdening its citizens,” he stated.