Nigeria can double revenue without heavy taxes – Oyedele

The Chairman of Nigeria’s Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele believes Nigeria can significantly boost its revenue without imposing new taxes.

Instead, he advocates for better tax administration and the use of technology to close the estimated N20 trillion tax gap.

In an interview on Channels Television’s station on Friday, Oyedele emphasised that the committee’s work focuses on transformative fiscal reforms driven by evidence and wide consultation.

“We’ve done a lot of work, quite extensive and far-reaching,” he remarked. We have ve consulted widely, including with governors, federal revenue services, and primary sector stakeholders,” he said.

The Presidential Committee on Fiscal and Tax Reforms, was established to review and reform Nigeria’s fiscal and tax policies, aiming to enhance efficiency, increase revenue, promote economic growth, and reduce poverty.

The committee’s objectives include reviewing tax laws, identifying new revenue sources, developing a national fiscal policy, harmonizing tax policies, improving tax administration, enhancing transparency, promoting economic diversification, and encouraging private sector investment.

The committee’s work is expected to lead to a more effective fiscal and tax system, improving the overall well-being of Nigerians.

Regarding the pace of fiscal reforms compared to monetary policy, Oyedele explained, “Fiscal reform cannot be as rapid as monetary policy. It requires evidence-driven policies and extensive consultation to ensure accurate diagnosis and effective prescriptions.”

He further disclosed that some recommendations, including a new tax regime offering relief to small businesses and easing capital constraints, have already been implemented.

These measures, signed by the Ministers of Finance and Economy, Wale Edun are designed to stimulate growth amid current economic challenges.

When asked about generating more revenue without increasing taxes, Oyedele expressed optimism.

“We have over 60 different taxes and levies but haven’t collected enough to adequately fund infrastructure like roads,” he noted.

“Instead of introducing new taxes, we advocate consolidating and harmonizing existing ones,” he added.

Oyedele stressed the importance of leveraging data intelligence and technology to close tax gaps and ensure compliance.

“By identifying those who should be paying but aren’t, we can potentially double our revenue within two to three years,” he asserted.

He also emphasised the need for exemptions for micro-businesses and low-income earners to prevent burdening society’s most vulnerable.

Oyedele affirmed his confidence in Nigeria’s ability to mobilize revenue sustainably.

“We believe in our approach over the medium to long term by streamlining taxes and enhancing compliance through modern methods, Nigeria can unlock its economic potential without overburdening its citizens,” he said.

The committee’s proposals are expected to undergo further legislative processes in the coming weeks, aiming to pave the way for a more robust fiscal policy framework in Nigeria.