The Chairman of Nigeria’s Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has addressed recent criticisms regarding the committee’s engagement with Nigerian governors. Speaking on Arise Television on Sunday, Oyedele refuted claims that the committee failed to consult with state governors, revealing that several meetings had been canceled by the governors themselves.
Oyedele responded to allegations made by prominent northern politician Buba Galadima, who claimed that the committee had only consulted with the governor of Lagos State. According to Oyedele, the committee had planned multiple meetings with governors from various states, but most of these meetings were either canceled or rescheduled, leaving only Lagos and Kaduna states willing to engage.
Governor Consultations and Committee Engagements
In defense of the committee’s efforts, Oyedele clarified that the fiscal reform initiative, launched on August 8, 2023, includes over 120 members from diverse sectors, including the private sector, government institutions, and student representatives from 22 universities. Despite these efforts, he noted that the governors’ forum had canceled scheduled meetings on four occasions and left the committee waiting until the early hours of the morning for brief discussions.
“We made efforts to engage with governors, but we were not given sufficient time or opportunity to explain the reforms,” Oyedele explained, adding that the committee had held extensive consultations with over 40 sectors, including manufacturers, SMEs, and the financial technology sector. He emphasized that these discussions were well-documented and publicly shared.
The Proposed Tax Reforms and Their Implications
The proposed tax reforms have sparked intense debate across Nigeria, particularly regarding the Value Added Tax (VAT) distribution model, which some northern leaders have criticized. The new model, which aims to distribute VAT based on derivation, has been opposed by 19 northern governors and traditional leaders. They argue that the reform would significantly reduce the region’s share from the federation account.
However, Oyedele defended the proposals, asserting that the committee’s approach seeks to create a more equitable and efficient tax system for the entire country. The bills, including the Nigeria Tax Bill 2024, Tax Administration Bill, and the Nigeria Revenue Service Establishment Bill, have been forwarded to the National Executive Council (NEC) and Federal Executive Council (FEC) for further deliberation before being sent to the National Assembly.
Lagos State’s Concerns and Broader Implications
One of the key points of contention has been the potential reduction of VAT revenue for Lagos State. Oyedele acknowledged that Lagos would face challenges under the proposed reforms but insisted that the new model would ultimately benefit Nigeria’s long-term fiscal health. He warned that if states were allowed to independently collect VAT, it could lead to chaos in the business environment, with Lagos potentially losing out on its current VAT share.
Oyedele also addressed calls for the withdrawal of the reform bills, noting that critics were focused on a few contentious provisions rather than recognizing the broader transformative potential of the legislation. He urged for a constructive discussion on the reforms instead of rejecting them outright.
Support from President Tinubu and Ongoing Dialogue
The committee chairman also spoke highly of President Bola Tinubu’s support, confirming that the president fully understands the importance of these reforms and has given the committee his backing without interfering in its work. Oyedele emphasized that the committee would continue to engage with stakeholders across the country, including religious leaders and political groups, to ensure the reforms are understood and widely supported.
“We have engaged with over 120 Muslim clerics, primarily from the north, to explain the reforms. The majority of them expressed their support after being properly informed about the bills,” Oyedele shared.
In closing, Oyedele reiterated that the committee’s goal is not to serve particular interests but to create a fair and effective taxation system for all Nigerians, emphasizing the urgency of implementing these reforms for the nation’s development.
