Tinubu Set Up Tax Policy Reform Committee, Appoints PwC’s Taiwo Oyedele As Head

President Bola Tinubu has given his approval for the establishment of a Presidential Committee on Fiscal Policy and Tax Reforms. The committee will be led by Mr. Taiwo Oyedele, who holds the position of Fiscal Policy Partner and Africa Tax Leader at PriceWaterhouseCoopers (PwC).

The announcement of the committee was made by Dele Alake, the Special Adviser to the President on Special Duties, Communications, and Strategy, in a statement released on Friday.

According to the statement, the creation of this committee aligns with President Tinubu’s commitment to eliminating obstacles that hinder business growth in Nigeria. The committee will consist of experts from both the private and public sectors, and its primary responsibilities will encompass various aspects of tax law reform, fiscal policy design and coordination, tax harmonization, and revenue administration.

Further elaborating on the matter, Mr. Adelabu Zacch Adedeji, the Special Adviser to the President on Revenue, emphasized that President Tinubu acknowledges the significance of establishing a robust fiscal policy framework and an efficient taxation system for the proper functioning of the government and the economy.

“Nigeria ranks very low on the global ease of paying taxes while the country’s Tax to GDP ratio is one of the lowest in the world and well below the African average.

“This has led to an overreliance on borrowing to finance public spending which in turn limits the fiscal space as debt service costs consume a greater portion of government revenue, annually resulting in a vicious cycle of inadequate funding for socio-economic development.

“While some incremental progress has been recorded over the years, the outcomes have not been transformative enough to change the narrative,” he said.

Adedeji highlighted several key issues within Nigeria’s tax system, including the presence of multiple taxes and revenue collection agencies, a fragmented and complex tax structure, low tax morale, widespread tax evasion, high costs associated with revenue administration, lack of coordination between fiscal and economic policies, and inadequate accountability in the utilization of tax revenue.

He said the establishment of this committee exemplifies President Tinubu’s dedication to tackling these challenges and instigating transformative reforms in fiscal policy and taxation.

The committee’s primary objective is to enhance the efficiency of revenue collection, ensure transparent reporting, and promote the effective allocation of tax and other revenues. These endeavors aim to bolster citizens’ tax morale, cultivate a positive tax culture, and drive voluntary compliance.

These initiatives will not only improve Nigeria’s revenue profile but also create a more favorable and internationally competitive business environment.

“Our aim is to transform the tax system to support sustainable development and achieve a minimum of 18% Tax to GDP ratio within the next 3 years without stifling investment or economic growth.

“It should be noted that this committee will not only advise the government on necessary reforms, but will also drive the implementation of such recommendations in support of the comprehensive fiscal policy and tax reform agenda of the current administration,” the SA on Revenue added.

Oyedele, who has been critical of the tax initiatives of the federal government, is an exceptionally accomplished professional renowned for his extensive expertise in fiscal policy, taxation, and economic matters. Currently serving as the Africa Tax Leader at PWC, he holds several prominent positions within various organizations.

He assumes the role of Thematic Lead for the Fiscal Policy & Planning Commission and serves as the Chairman of the West Africa Debt Management Roundtable of the Nigerian Economic Summit Group (NESG). Furthermore, he chairs the Taxation & Fiscal Policy Faculty Board of the Institute of Chartered Accountants of Nigeria (ICAN) and is a member of the Nigerian Taxation Standards Board.

Oyedele also contributes as a member of the Ministerial Committee responsible for implementing Nigeria’s National Tax Policy. He is an active participant in the Global Tax Forum and has previously held a position on the Global Governing Council of the Association of Chartered Certified Accountants (ACCA).

Beyond his professional achievements, Oyedele is an educator and currently holds the position of Associate Professor at the Babcock University Business School. He has pursued higher education at prestigious institutions such as the London School of Economics & Political Science, Yale University, and Harvard Kennedy School Executive Education. Additionally, he serves as a guest lecturer at the Lagos Business School and is the Founder and President of the Impact Africa Foundation.

The federal government has been moving to expand the tax net in a bid to create an alternate source of income amid dwindling oil revenue and high public debt servicing.

However, the moves have been widely considered oppressive, especially for the informal sector – already grappling with harsh economic realities buoyed by depleting the spending power of the Nigerian people.

While commending initiatives such as the move to curb multiple taxation and tax revenue leakages, experts said the government needs to consider Nigeria’s economic realities before implementing some of its policies.

On Thursday, the government announced that Tinubu signed five executive orders, abolishing the 5% telecom Excise tax as well as Excise Duty taxes on locally manufactured goods and services. The executive orders also addressed other raging issues contained in the Finance Act.

However, experts said there is more need to align the tax initiatives with current economic realities so as not to squeeze businesses and households further.