— Says tax reforms target posterity not punishment
By Johnbosco Agbakwuru
ABUJA — CHAIRMAN, Presidential Committee on Fiscal Policy and Tax Reforms, Prof. Taiwo Oyedele on Wednesday said President Bola Tinubu in the past two years of his administration has not introduced any new tax.
Prof. Oyedele also said that the taxes being implemented by the government are meant to provide posterity and not to punish Nigerians.
Speaking to journalists in Abuja on the government new tax laws, he said despite the negative impressions in some quarters over the new tax policy, Nigerians stand to gain from 2026 when the good intentions of the policies would have started to yield positive results if not reversed.
He further stated that the administration’s new tax laws are not designed for applause but to deliver measurable outcomes that simplify compliance, widen the tax base, and boost government revenue without stifling economic activity.
Oyedele, who reflected on the weight of responsibility the reforms carry, drawing from his personal life, said he could not remember any new tax imposed by the Tinubu’s administration.
He said: “I am not aware any tax that this Tinubu’s administration has introduced. I am serious, I am actually curious and I follow matters around tax a lot, there is no one that this government has introduced.”
On the accusation that the government has imposed many taxes on the citizenry, Oyedele said it was strange to him hearing such narratives which he said had becomes a general belief.
He, however said that low level of trust was responsible for the negative impression, stressing that, “politicians have dealt with us, so we don’t trust them.”
Oyedele said that Nigeria’s economy was closed to a total collapse as at May 2023, while about thirty trillion naira printed within the period before the removal of the petrol subsidy to salvage the economy.
He said the country’s tax regime has long been criticised as complex, fragmented, and regressive, noting that there are over 60 different taxes, 200 levies imposed by federal, state, and local governments and about 100 agencies were collecting taxes and levies form the citizenry.
He said many of the levies are poorly administered or duplicated while businesses and citizens often find themselves overtaxed without seeing the benefits in public services.
Oyedele said, the new tax law directly addresses these distortions.
“Our priority is to simplify compliance by harmonising overlapping taxes, eliminating nuisance levies, and creating a streamlined system that encourages productivity,” he explained.
A central goal of the reforms, according to Oyedele, is fairness. He said Nigeria’s tax-to-GDP ratio remains one of the lowest in Africa, at less than 10 percent, far below the continental average of about 16 percent. Yet, those who pay often complain of being overburdened, while large parts of the informal economy remain untaxed.
“The law is designed to widen the tax net for more people to contribute, without punishing those already compliant. High-net-worth individuals and highly profitable companies must contribute their fair share, while low-income earners will be protected,” Oyedele said.
He explained that aligning Nigeria’s tax policies with global best practices will not only stabilise revenue but also enhance the country’s competitiveness as an investment destination.
He said the tax laws are expected to: Reduce the cost of doing business, particularly for small and medium enterprises, by eliminating arbitrary levies.
Boost investor confidence through transparent and predictable tax rules.
Increase government revenue in a sustainable manner, enabling investment in infrastructure, healthcare, and education.
Promote equity by ensuring that taxation reflects ability to pay. Curb corruption by digitising collection and minimising the role of tax officials in direct cash handling. What matters to me is not applause or commendations,” Oyedele said firmly.
“What matters is that, at the end of the day, Nigerians can see that the system is simpler, businesses can comply without fear or harassment, and government earns more legitimate revenue to meet its obligations.”
He emphasised that the reforms will also benefit states and local governments by providing them with clearer, lawful pathways to raise revenue without resorting to arbitrary levies that discourage enterprise.
Recognising that tax reform is politically sensitive, Oyedele called for sustained dialogue with labour unions, business groups, and civil society.
“These reforms will only succeed if there is trust. Citizens must see that their taxes are being put to good use, while government must resist the temptation to tax arbitrarily. It is a two-way street,” he said.
Industry groups have largely welcomed the direction of the reforms but have urged the government to ensure that implementation does not create new bureaucratic hurdles. Labour leaders, on their part, have called for safeguards to protect low-income earners from any unintended consequences.
Oyedele framed the reforms as part of a broader social contract between government and citizens.
“People do not resist taxes because they don’t want to pay. They resist because they do not trust that the money will be used for their benefit. This law is about building that trust by ensuring accountability and transparency. If we get it right, Nigerians will see paying taxes not as a burden, but as a civic responsibility that drives national development,” he said.
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