By Peter Jatau
Abuja, Nigeria – The Chairman of Nigeria’s Fiscal Reform Committee, Taiwo Oyedele, has called for a sweeping overhaul of the country’s tax system, emphasizing the need for harmonization, fairness, and efficiency to drive economic growth and improve revenue collection.
Speaking at a public hearing on tax reform bills before the Nigerian Senate, Oyedele outlined key issues plaguing the current tax system, including multiplicity of taxes, excessive burdens on businesses, and outdated laws that stifle investment and economic development.
A Call for Tax Harmonization
Oyedele stressed that Nigeria’s fragmented tax system creates unnecessary compliance burdens for businesses and individuals, discouraging investment and fostering tax avoidance.
“A harmonized tax regime will eliminate redundancies, simplify compliance, and enhance predictability in our tax environment,” he said. “It will also foster intergovernmental cooperation, ensuring that revenue collection is optimized to meet national development goals.”
Promoting Fairness and Economic Growth
The Fiscal Reform Committee is pushing for a progressive tax system that ensures those with higher earnings contribute a fair share while reducing the burden on low- and middle-income earners.
By broadening the tax base, adjusting tax brackets, and eliminating excessive levies, Oyedele argued that Nigeria can create a system that incentivizes economic participation and supports sustainable growth.
“High tax rates and complex rules deter investment and job creation,” he noted. “We must strike a balance between revenue generation and economic stimulation.”
Enhancing Revenue Mobilization
Nigeria’s tax-to-GDP ratio remains below global and regional averages, limiting the government’s ability to fund infrastructure and social programs.
To address this, Oyedele advocated for expanding the tax base by integrating the informal sector, leveraging technology for efficient tax collection, and strengthening enforcement mechanisms to curb tax evasion and avoidance.
“Technology-driven tax systems, digital payments, and enhanced enforcement will play a pivotal role in boosting compliance and reducing revenue losses,” he said.
The Road Ahead
The tax reform bills under consideration are seen as a crucial step toward reshaping Nigeria’s fiscal future. Oyedele urged lawmakers to seize the moment and enact reforms that would build a tax system that is transparent, fair, and conducive to sustainable economic growth.
“The best time for action was yesterday. The next best time is now,” he concluded.
As Nigeria grapples with economic challenges, the proposed reforms could play a pivotal role in ensuring long-term stability, investment growth, and shared prosperity for its citizens.
