Tax reform inevitable despite pains, says Oyedele

 

Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr. Taiwo Oyedele, has defended the proposed tax reform bills, describing them as unavoidable structural changes that may come with temporary hardship but are necessary for Nigeria’s long-term economic stability.

Oyedele said the reforms, which he described as the most pro-worker tax changes in the country’s history, are being misunderstood largely due to a deep trust deficit between citizens and government.

Speaking on Tuesday at a colloquium in Abuja to mark the 50th birthday of former Nigerian Ports Authority Managing Director, Hadiza Bala Usman, Oyedele said implementing meaningful reforms in Nigeria has become increasingly difficult because of widespread scepticism about government intentions.

According to him, lack of trust, weak tax culture and poor public understanding of existing tax obligations have combined to create resistance against the reform process.

“Reforms are difficult everywhere, but in Nigeria, they are even more complex,” Oyedele said. “First, there is very low trust in government. Second, the tax culture is weak. Many Nigerians do not even know what taxes they are required to pay under the old laws.”

He explained that contrary to public perception, the reforms are not designed to introduce more taxes but to reduce, streamline and harmonise multiple levies that burden individuals and businesses.

Oyedele stressed that political courage is required to push through reforms that disrupt entrenched interests, noting that reform advocates often face intense backlash.

“There are political, economic and reputational risks involved,” he said. “I receive all kinds of attacks online, including threats. But leadership requires courage to take such risks.”

Using a medical analogy, Oyedele said Nigeria had for decades applied only temporary solutions to its tax system problems.

“What we have been doing all along was administering pain relievers. Now, we are carrying out surgery. It will come with some pain, but it is the right thing to do,” he said.

He expressed optimism that the country is making progress not seen in decades, adding that staying the course would ultimately benefit all Nigerians.

Also speaking at the event, Muhammad Abdullahi, Deputy Governor of the Central Bank of Nigeria (CBN) in charge of Economic Policy, said many reforms fail because governments are unable to translate vision into durable systems that can withstand political pressure and short-term public anxiety.

Abdullahi commended the administration of President Bola Ahmed Tinubu for stabilising key macroeconomic indicators and expressed confidence that improved policies would soon yield positive results across microeconomic sectors.