The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has alleged that the federal government has failed to justify the collection of over 60 taxes and levies nationwide.
Speaking during a Senate plenary on Wednesday, Oyedele lamented that the current fiscal system stifles economic growth while delivering little to the citizens.
“The fiscal system we have today inhibits growth as more than 60 taxes and levies are collected from across the country but nothing to show for it,” he said.
He highlighted the urgent need for reforms to stop taxing capital and struggling businesses, a practice he said has driven Nigerian enterprises to other countries.
“We do not want to tax capital or poverty but investment. We are beginning to lose our tax base to other countries. This is why it is urgent to reform the tax system,” Oyedele added.
Despite Oyedele’s detailed presentation, the Senate resolved to invite his team on another legislative date to provide further explanations regarding the proposed reforms.
The discussion followed a heated session where some lawmakers protested the appearance of Federal Inland Revenue Service (FIRS) Chair Zacch Adedeji and consultants at the plenary to explain the Tax Reform Bill. The Senate had to suspend its rules to admit the FIRS Chair and his team.
The proposed Fiscal Policy and Tax Reform Bill, led by Oyedele’s committee, has stirred significant controversy since President Bola Tinubu forwarded it to the National Assembly in October.
The bill, part of Tinubu’s broader economic reforms, aims to enhance tax compliance and align fiscal policies with global standards. However, its reception has been divisive, with Northern leaders and the National Economic Council (NEC) calling for its withdrawal.
Key among the objections is the proposed amendment to the distribution of Value Added Tax (VAT), which would adopt a derivation-based model—a shift opposed by the 19 Northern governors.
Despite the resistance, Tinubu has insisted that the bill will not be withdrawn, emphasizing the need for the legislative process to run its course.
In a statement by presidential spokesperson Bayo Onanuga, the presidency assured stakeholders that the reform aims to create a fairer tax system for all states.
“While urging the NEC to allow the process to take its full course, President Tinubu welcomes further consultations and engagement with key stakeholders to address any reservations about the bills while the National Assembly considers them for passage,” the statement read.
The President also reiterated that the tax reforms are critical to improving the economy’s productivity, making the business environment more conducive for investments, and enhancing efficiency in tax administration.
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