In a significant move towards fostering business growth and removing barriers hindering Nigeria’s economic development, President Bola Tinubu has given his approval for the establishment of a Presidential Committee on Fiscal Policy and Tax Reforms. The committee, chaired by Mr. Taiwo Oyedele, a renowned expert in fiscal policy and taxation, will comprise professionals from the private and public sectors.

According to a statement issued by Dele Alake, Special Adviser to the President on Special Duties, Communications, and Strategy, the formation of the committee aligns with President Tinubu’s commitment to creating an enabling environment for businesses to thrive in Nigeria. The committee’s main responsibilities include tax law reform, fiscal policy coordination, harmonization of taxes, and revenue administration.

Mr. Adelabu Zacch Adedeji, the Special Adviser to the President on Revenue, highlighted the significance of a sound fiscal policy environment and an effective taxation system for Nigeria’s government and economy. He emphasized that Nigeria currently ranks low on the global ease of paying taxes index, with a Tax to GDP ratio that falls below the African average. This over-reliance on borrowing limits the fiscal space, resulting in insufficient funding for socioeconomic development.

Adedeji identified key challenges in Nigeria’s tax system, including multiple taxes and revenue collection agencies, a fragmented and complex tax structure, 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.

The primary objective of the committee is to enhance revenue collection efficiency, ensure transparent reporting, and promote the effective utilization of tax and other revenues. It aims to boost citizens’ tax morale, foster a healthy tax culture, and drive voluntary compliance. The committee aims to achieve a minimum Tax to GDP ratio of 18% within the next three years, without stifling investment or economic growth.

The committee will not only provide advisory support to the government on necessary reforms but will also take an active role in implementing those recommendations. Mr. Oyedele, the committee’s chairperson, brings a wealth of expertise to the table. He is currently the Africa Tax Leader at PriceWaterhouseCoopers (PwC), the Thematic Lead for the Fiscal Policy & Planning Commission, and the Chairman of the West Africa Debt Management Roundtable of the Nigerian Economic Summit Group (NESG).

Mr. Oyedele’s credentials include his role as the Chairman of the Taxation & Fiscal Policy Faculty Board of the Institute of Chartered Accountants of Nigeria (ICAN) and membership in the Nigerian Taxation Standards Board. He also serves on the Ministerial Committee for the implementation of Nigeria’s National Tax Policy and the Global Tax Forum. As an esteemed educator, he holds the position of Associate Professor at the Babcock University Business School.

With his extensive knowledge and experience, Mr. Oyedele is well-positioned to lead the committee in driving fiscal policy and tax reforms. His expertise in the field, combined with the collective efforts of the committee members, is expected to transform the tax system, support sustainable development, and contribute to Nigeria’s economic growth.