Nigeria’s Tax System is Unconducive for Growth—Taiwo Oyedele
By DAYO ADESULU
Tax Reforms Critical to Economic Expansion, Says Presidential Committee Chairman
Lagos, Nigeria – February 14 (ANI): The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has criticized Nigeria’s tax system, stating that it stifles economic growth and discourages business expansion.
Speaking on Thursday at the Economic Roundtable & 2025 Macroeconomic Outlook event hosted by rating firm Agusto & Co. in Lagos, Oyedele highlighted the excessive number of taxes and taxing agencies in the country, which he says create an unfriendly business environment.
“Nigeria’s Tax System is Holding Us Down” – Oyedele
Oyedele emphasized that Nigeria’s tax policies hamper growth rather than facilitate it, placing undue pressure on businesses of all sizes.
“We tax anything and everything that moves. If it keeps moving, we tax it even more. Small business owners feel like the government is feasting on them,” he stated.
To illustrate the excessive taxation, he challenged anyone to put up a business sign on a roadside and observe the response.
“Within two days, at least five government agencies will demand payments—from business premises permits to advert levies—before you even secure a customer,” he explained.
Oyedele expressed hope that, in the future, Nigerian entrepreneurs would receive supportive calls from government agencies offering credit facilities and capacity development programs instead of immediate tax demands.
House of Reps Advances Tax Reform Bills
His remarks come as the House of Representatives on Wednesday passed four tax reform bills for a second reading. The bills have been referred to the Finance Committee for further legislative review, including a public hearing.
Foreign Exchange Issues: Fiscal Policies Can Provide a Solution
Addressing Nigeria’s foreign exchange crisis, Oyedele argued that fiscal policies could help stabilize the naira, even though such solutions may not be politically popular.
“The parallel market’s divergence from the official exchange rate is a bigger danger than naira volatility. We could impose a tax on any premium earned in the parallel market, requiring payment within seven days. This would help bridge the gap permanently,” he suggested.
Economic Experts Weigh In on Nigeria’s Fiscal Challenges
Agusto & Co.: Global Trends Will Shape Nigeria’s Economic Future
Yinka Adelekan, Managing Director of Agusto & Co., emphasized the impact of global disruptions, technological innovation, and geopolitical shifts on Nigeria’s economy.
“We are at a pivotal moment in history where these factors will shape our collective future and national development,” she said.
Doyin Salami: Nigeria Needs Stability and Better Spending
Renowned economist Dr. Doyin Salami called for more efficient government spending, outlining four key conditions for economic stability:
- Economic growth must exceed population growth by at least 2x.
- Inflation must be low and declining, ideally between 10-15%.
- Fiscal responsibility must improve, as the country currently exceeds the Fiscal Responsibility Act’s provisions.
- The external account remains Nigeria’s strongest economic area.
“Inflation is high, but food security is an even more troubling issue,” Salami added.
Johnson Chukwu: Strong Policies, Weak Execution
Financial analyst Johnson Chukwu, CEO of Cowry Assets Management, critiqued the government’s economic approach, stating:
“The government has strong policies but weak execution.”
Conclusion: Nigeria’s Tax and Fiscal Reforms Are Crucial for Growth
With ongoing tax reform discussions in the National Assembly, experts agree that fiscal policy adjustments will be crucial to Nigeria’s economic recovery and long-term stability.
