Tinubu, Oyedele Opposed Buhari’s VAT Increase Plan, PRNigeria Confirms
Amid the ongoing debate surrounding the Tax Reform Bill 2024, a fact-check by PRNigeria has confirmed that President Bola Ahmed Tinubu and Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, previously opposed a proposal to increase Value-Added Tax (VAT) during former President Muhammadu Buhari’s administration.
Recent social media posts have circulated screenshots alleging Tinubu and Oyedele were vocal critics of the Buhari administration’s VAT hike plans. One of the posts features a bold caption: “Tinubu opposes the Buhari administration’s plan to increase VAT.” The resurgence of these claims comes as the Tax Reform Bill 2024, which proposes increasing VAT from 7.5% to 15% by 2030, sparks public scrutiny.
Tinubu’s Opposition in 2019
During his 67th birthday colloquium on March 28, 2019, held at the International Conference Centre in Abuja, Tinubu, then the National Leader of the All Progressives Congress (APC), publicly opposed the proposed VAT hike. He stated, “An increase in VAT will reduce the purchasing power of Nigerian consumers and is capable of increasing hardship in the country.” Tinubu urged the then Vice President, Yemi Osinbajo, who chaired the National Economic Council (NEC), to reconsider the proposal.
Mainstream media outlets widely reported Tinubu’s remarks, with headlines emphasizing his resistance to the VAT hike, such as “Tinubu Kicks Against Proposed Increase in VAT.”
Oyedele’s Opposition on Social Media
Taiwo Oyedele, a tax expert and then a private sector professional, also opposed the proposed VAT increase. In a series of tweets, he criticized the plan, stating that it was poorly timed and inconsistent with Nigeria’s economic realities. He warned that an increase without mechanisms like a registration threshold and the zero-rating of basic goods would disproportionately burden the poor and small businesses.
Oyedele specifically criticized the Federal Inland Revenue Service (FIRS) under Babatunde Fowler, which had suggested raising VAT from 5% to between 7.25% and 8.75%. His comments aligned with principles outlined in the 2017 National Tax Policy, which aimed to protect vulnerable populations.
The Current Debate
The resurfaced criticisms have reignited discussions about fiscal policies and alleged inconsistencies in President Tinubu’s approach to tax reforms. The Tax Reform Bill 2024, currently at its second reading in the National Assembly, proposes a phased VAT increase and other fiscal adjustments. While Oyedele, now Chairman of the Tax Reform Committee, was initially quoted as supporting a 10% VAT hike, he later denied such plans, stating that the Federal Government has no intention of increasing VAT.
PRNigeria’s Verdict
Following its investigation, PRNigeria confirmed that both Tinubu and Oyedele opposed the VAT hike during Buhari’s administration. The fact-check involved reverse image searches and reviews of media reports, which corroborated the claims.
Conclusion: The assertion that Tinubu and Oyedele opposed the VAT increase during Buhari’s tenure is accurate. Their positions, widely reported at the time, were consistent with their advocacy for policies that protect the poor and promote economic stability.
