Oyedele Reveals Why New Tax Law Faces Criticism

The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has warned that the reforms will come with some pain, but it’s a necessary step towards progress.

Speaking at a colloquium in Abuja, Oyedele highlighted the challenges facing the reform process, citing a lack of trust in government and a weak tax culture in Nigeria.

“Reforms are hard to get around, and tough reforms are harder because they involve interest,” he said.

“The trust in government and within government is very low,” he said, adding that many Nigerians are unaware of their tax obligations.

“A lot of Nigerians have no idea what taxes they are supposed to be paying, even under the old law, and they haven’t been paying them.”

Despite the challenges, Oyedele is optimistic that the reforms will bring positive change while courage and political will remain essential.

“What we have been doing all along was pain reliever. It hasn’t taken us far. Now we’re doing the surgery. It’s going to come with some pain, but that’s the only right thing to do.

“You need that courage to push through, you need the courage to take risks, because it’s very risky,” Oyedele emphasised.

Muhammad Abdullahi, deputy governor of the Central Bank of Nigeria (CBN), echoed Oyedele’s sentiments, saying that reforms often fail due to an inability to translate vision into durable systems.

He praised President Bola Tinubu’s administration for improving the macroeconomic environment.

“Overall, my view is that Nigeria is making progress, the sort of progress I haven’t seen in my adult life. And if we can stay the course and see this through, we’ll all be better for it,” he noted.