The formation of the Presidential Committee on Fiscal Policy and Tax Reforms has been approved by President Bola Tinubu. Experts in both the public and private sectors have been hand-picked to be part of the committee. According to a statement released and signed by Special Adviser on Special Duties, Communications and Strategy Dele Alake, this move resonates the president’s commitment to eliminate all obstacles to the expansion of businesses in the country. Mr. Taiwo Oyedele, Fiscal Policy Partner and Africa Tax Leader at PriceWaterhouseCoopers (PwC), is selected to lead the committee, per the statement.
Experts from the private and public sector in the committee cycle will be saddled with duties from the many facets of tax law reform, fiscal policy design and coordination, tax harmonization, and revenue administration. The President’s Special Adviser on Revenue, Mr. Adelabu Zacch Adedeji, stated that President Tinubu understands the significance of an ideal fiscal policy climate and a proficient taxation system to the smooth operation of government and the economy. Note that Nigeria has a relatively low tax to GDP ratio, even compared to other African countries, and a dismal global ranking for the portability of paying taxes.
Primary objective is to improve tax effectiveness.
As a result, governments have become heavily dependent on borrowing to sustain public spendings and eventually diminishing fiscal flexibility and limiting funding on social and economic development due to the fact that a large part of the revenue is being used to service debts. He claimed that while considerable progress had been made over the years, it was inadequate to completely change the context. Adedeji cites a fragmented and complex system, many levies, and multiple bodies in charge of collecting taxes as problems plaguing Nigeria’s tax system.
Also included are low tax morale, high prevalence of tax evasion, high cost of revenue administration, lack of coordination between fiscal and economic policies, and poor accountability in the utilization of tax revenue. President Tinubu has formed this committee to address these issues and implement far-reaching changes to fiscal policy and taxation. The committee’s primary objective is to improve the effectiveness of tax and other revenue collection and reporting in order to increase citizen tax morale, promote a healthy tax culture, and foster voluntary compliance.
Aim is to reform and push tax to GDP ratio to at least 18%.
This move will foster a more conducive and internationally competitive business climate in Nigeria, which will in turn boost the country’s revenue profile. The overarching goal is to reform the tax system in a way that promotes sustainable development and pushes the tax to GDP ratio to at least 18% within three years without restricting investment or economic growth. More importantly, the committee will provide the government with strategic advice on required reforms and ensure that its proposals to bolster the comprehensive fiscal policy and tax reform agenda of the incumbent administration are put into action.
Taking his credibility and expertise into account, Oyedele appears to be the ideal candidate for the position. He has a wealth of experience in the fields of economics, taxation, and fiscal policy. He is currently the tax leader for PWC in Africa. Oyedele holds positions in a number of high-profile organizations outside of PwC. He chairs the Nigerian Economic Summit Group’s (NESG) West Africa Debt Management Roundtable and is the thematic Lead for the Fiscal Policy & Planning Commission. And also serves on the Nigerian Taxation Standards Board and is the chair of the Taxation & Fiscal Policy Faculty Board for the Institute of Chartered Accountants of Nigeria (ICAN).
Oyedele is a prominent figure in the field of education.
He is also involved in the implementation of Nigeria’s National Tax Policy as a member of the Ministerial Committee. He has served on the Global Governing Council of the Association of Chartered Certified Accountants (ACCA) and is currently a member of the Global Tax Forum. Oyedele is a prominent figure in the field of education; he is the President of the Impact Africa Foundation and a Founder and Associate Professor at the Babcock University Business School and also an alumnus of the London School of Economics & Political Science, Yale University and Harvard Kennedy School Executive Education.