The President of Nigeria, Bola Tinubu has approved the formation of a Presidential Committee on Fiscal Policy and Tax Reforms.
According to a statement issued on Friday by Dele Alake, Special Adviser to the President on Special Duties, Communications, and Strategy, Taiwo Oyedele, Fiscal Policy Partner and Africa Tax Leader at PriceWaterhouseCoopers (PwC) will chair the committee.
The formation of the committee, according to the statement, was in keeping with President Tinubu’s promise to remove all barriers to Nigerian business growth.
It was explained that the committee will be made up of experts from both the private and public sectors and will be in charge of various aspects of tax law reform, fiscal policy design and coordination, tax harmonisation, and revenue administration.
Further explaining, Mr. Adelabu Zacch Adedeji, Special Adviser to the President on Revenue, stated that President Tinubu recognises the importance of a sound fiscal policy environment and an effective taxation system for the functioning of the government and the economy.
He said, ”Nigeria ranks very low on the global ease of paying taxes, while the country’s Tax to GDP ratio is one of the lowest in the world and well below the African average.
”This has led to an overreliance on borrowing to finance public spending which in turn limits the fiscal space as debt service costs consume a greater portion of government revenue, annually resulting in a vicious cycle of inadequate funding for socio-economic development.
”While some incremental progress has been recorded over the years, the outcomes have not been transformative enough to change the narrative,” he said.
Multiple taxes and revenue collection agencies, a fragmented and complex tax system, low tax morale, a high prevalence of tax evasion, a high cost of revenue administration, a lack of coordination between fiscal and economic policies, and poor accountability in the utilisation of tax revenue are among the key challenges in Nigeria’s tax system, according to Adedeji.
President Tinubu’s dedication to addressing these issues and enacting fundamental tax and fiscal policy reforms is reflected in the creation of this committee.
The committee’s main goals are to increase the effectiveness of revenue collection, guarantee transparent reporting, and support the efficient use of tax and other revenues in order to raise tax compliance among citizens, promote a positive tax culture, and encourage voluntary compliance.
These initiatives will boost Nigeria’s revenue profile while also fostering a more favourable and globally competitive business environment.
”Our aim is to transform the tax system to support sustainable development and achieve a minimum of 18% Tax to GDP ratio within the next 3 years without stifling investment or economic growth.
”It should be noted that this committee will not only advise the government on necessary reforms but will also drive the implementation of such recommendations in support of the comprehensive fiscal policy and tax reform agenda of the current administration,” the SA on Revenue added.
Mr. Oyedele is said to be a highly accomplished professional with extensive expertise in fiscal policy, taxation, and economic matters. He currently serves as PWC Africa’s tax leader.
He is the Thematic Lead for the Fiscal Policy & Planning Commission and serves as the Chairman of the West Africa Debt Management Roundtable of the Nigerian Economic Summit Group (NESG).
He chairs the Taxation & Fiscal Policy Faculty Board of the Institute of Chartered Accountants of Nigeria (ICAN) and is a member of the Nigerian Taxation Standards Board.
He also serves as a member of the Ministerial Committee on the implementation of the National Tax Policy in Nigeria.
He is a member of the Global Tax Forum and has previously served as a member of the Global Governing Council of the Association of Chartered Certified Accountants (ACCA).
As an educator, Oyedele holds the position of Associate Professor at the Babcock University Business School.
He is an alumnus of the London School of Economics & Political Science, Yale University, and Harvard Kennedy School Executive Education. He is a guest lecturer at the Lagos Business School and the Founder and President of Impact Africa Foundation.
