Tax Reforms Target Multiple Levies, Says Oyedele

The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has stated that Nigeria’s ongoing tax reforms are designed to eliminate multiple levies and create a more efficient, transparent, and business-friendly tax system. He explained that the reforms aim to streamline the country’s complex tax structure, boost revenue generation, and reduce the burden on citizens and businesses.

Speaking in Abuja at a policy dialogue on the state of Nigeria’s fiscal framework, Oyedele emphasised that the government’s priority is to simplify tax compliance and eliminate overlapping taxes that have stifled economic growth and discouraged investment for years. According to him, the reform blueprint targets harmonisation at both federal and subnational levels to ensure that taxes are fair, simple, and predictable.

“The tax system as it currently stands is not efficient. We have too many taxes — many of which do not contribute meaningfully to revenue but instead create hardship and encourage corruption,” Oyedele stated. “Our goal is to simplify and harmonise the system, ensuring that the number of taxes is reduced significantly while increasing compliance and transparency.”

Oyedele revealed that under the proposed framework, the federal and state governments are collaborating to align fiscal policies and remove bottlenecks that lead to double taxation. He added that the reform committee has held consultations with major stakeholders including the Federal Inland Revenue Service (FIRS), Nigeria Governors’ Forum, Manufacturers Association of Nigeria (MAN), and the Nigerian Economic Summit Group (NESG) to ensure broad consensus on the reform agenda.

He also noted that one of the key objectives is to shift the focus from revenue extraction to growth stimulation. “We want a tax system that supports small businesses, encourages investment, and makes Nigeria globally competitive. The reform is not just about collecting more revenue, but about creating a system that enables prosperity,” he said.

According to Oyedele, the committee has identified over 60 types of taxes, levies, and fees being collected across federal, state, and local governments, many of which overlap. “Our target is to consolidate these into fewer, well-structured taxes that are easy to administer and comply with. Businesses should be able to pay their taxes without fear, confusion, or harassment,” he explained.

He added that a new Tax Harmonisation Bill is being drafted to give legal backing to the reforms. The bill, when passed, will introduce a single revenue collection window and an integrated database to improve transparency and accountability in tax administration.

The reforms are also expected to address leakages in the system, curb tax evasion, and improve the ease of doing business in the country. Oyedele highlighted that Nigeria’s tax-to-GDP ratio remains one of the lowest in Africa, hovering around 10%, far below the continental average of 18%. He stressed that the government’s goal is to raise this ratio sustainably, without imposing excessive burdens on taxpayers.

In his words, “We cannot grow the economy by taxing poverty. Our approach is to expand the tax net rather than increasing rates. That means bringing in people who are outside the system — especially those in the informal sector and high-net-worth individuals — while simplifying the process for existing taxpayers.”

He also disclosed that the reform committee is working with the Central Bank of Nigeria (CBN) and the Ministry of Finance to align monetary and fiscal policies for macroeconomic stability. The collaboration, he said, will help ensure that tax policies complement government efforts to control inflation, stabilise the exchange rate, and attract foreign direct investment.

Industry stakeholders have applauded the reform agenda, describing it as a long-overdue intervention to fix Nigeria’s cumbersome tax system. The Director-General of the Lagos Chamber of Commerce and Industry (LCCI), Dr. Chinyere Almona, praised the committee’s focus on reducing multiple taxation, noting that it would improve the operating environment for businesses.

“Businesses have long suffered under the weight of multiple taxes imposed by different levels of government. The reform, if implemented effectively, will restore confidence in the system and encourage compliance,” Almona said.

Similarly, the Manufacturers Association of Nigeria (MAN) expressed optimism that the reforms would ease the tax burden on industries, reduce arbitrary charges, and enhance competitiveness in the manufacturing sector.

Oyedele reiterated that the reforms are guided by three core principles: fairness, efficiency, and accountability. He assured Nigerians that the new system would ensure equitable distribution of tax revenues and better service delivery from government institutions.

The Presidential Fiscal Policy and Tax Reforms Committee was inaugurated by President Bola Ahmed Tinubu in 2023 to design a new fiscal framework aimed at improving revenue generation while fostering inclusive economic growth. The committee’s final recommendations are expected to be submitted to the Presidency before the end of the first quarter of 2026.

 

According to Oyedele, the success of the reforms depends largely on stakeholder cooperation and institutional discipline. “We must all work together to rebuild trust between the government and taxpayers. Only then can we achieve a system that works for everyone,” he concluded.