FG plans to double revenue without raising taxes – Oyedele

Taiwo Oyedele, the chairman of Nigeria’s Presidential Fiscal Policy and Tax Reforms Committee, has expressed optimism that Nigeria need not to impose new taxes to raise revenue.

Oyedele made this revelation when he featured as a guest in an interview on Channels Television’s “Politics Today” on Friday, as he advocated for better tax administration and the use of technology to close the estimated N20 trillion tax gaps.

Oyedele said “We have over 60 different taxes and levies but haven’t collected enough to adequately fund infrastructure like roads.

“Instead of introducing new taxes, we advocate consolidating and harmonizing existing ones.”

According to him, “by identifying those who should be paying but aren’t, we can potentially double our revenue within two to three years”.

Oyedele harped on the importance of leveraging data intelligence and technology to close tax gaps and ensure compliance.

He explained that the committee’s work focuses on transformative fiscal reforms driven by evidence and wide consultation.

As part of the efforts of President Bola Tinubu to ensure tax compliance and fiscal reforms, he established the Presidential Committee on Fiscal and Tax Reforms to review and reform Nigeria’s fiscal and tax policies, aiming to enhance efficiency, increase revenue, promote economic growth, and reduce poverty.

Part of the committee’s core mandates include reviewing tax laws, identifying new revenue sources, developing a national fiscal policy, harmonizing tax policies, improving tax administration, enhancing transparency, promoting economic diversification, and encouraging private sector investment.

The committee’s work is expected to lead to a more effective fiscal and tax system, improving the overall well-being of Nigerians.

The former PwC tax leader for Africa emphasised regarding the pace of fiscal reforms compared to monetary policy that “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 also revealed that some recommendations, including a new tax regime offering relief to small businesses and easing capital constraints, signed by Wale Edun, the minister of Finance and Economy, have already been implemented.

Oyedele also harped on the need for exemptions for micro-businesses and low-income earners to prevent burdening society’s most vulnerable.

The tax expert also emphasised affirmed his confidence in Nigeria’s ability to mobilize revenue sustainably, adding “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.”