Taiwo Oyedele Advocates for Tax Reforms to Aid Manufacturers and Enhance Business Environment

Taiwo Oyedele, the chairperson of the Presidential Fiscal Policy and Tax Reforms Committee, reaffirmed his commitment yesterday to ensuring that tax reforms are beneficial for manufacturers by reducing business costs, fostering investments, and propelling industrial growth.

While displaying his dedication to the nation's transformative agenda, he refuted claims suggesting that the Federal Government had suspended the distribution of implementation guidelines for new tax legislation due to prevailing uncertainties.

Ben Akabueze, a former Director-General of the Budget Office of the Federation, highlighted that Nigeria's tax-to-GDP ratio is alarmingly low, remaining below ten percent, compared to the African average of about sixteen percent, as stakeholders gear up for a significant economic summit centered around the nation’s tax reform efforts.

During an engagement session held at MAN House under the theme, ‘From Legislative Assembly to Factory Floor: What the New Tax Laws Mean for Nigerian Manufacturers,’ Oyedele detailed that key changes impacting manufacturers include the exclusion of Value-Added Tax (VAT) on locally produced sanitary items like towels, pads, tampons, assistive devices, and products related to disabilities. Also included are zero-rated items such as fertilizers, domestically manufactured agricultural chemicals, veterinary medicines, and animal feeds.

He further explained that the imposition and collection of VAT on products such as petroleum, renewable energy devices, Compressed Natural Gas (CNG), and Liquefied Petroleum Gas (LPG) may be suspended through an official order from the minister.

Regarding input tax credits, Oyedele noted that input VAT on taxable goods and services could potentially be deducted from the VAT owed, provided the input tax was incurred for generating taxable supplies.

During the Cowry Quarterly Economic Discourse at the Capital Club in Victoria Island, Lagos, he mentioned that existing legislation already provides automatic exemptions from capital gains tax for individuals whose total asset disposal proceeds do not surpass N150 million, as long as their capital gains are below N10 million annually.

The discussion, themed ‘Nigeria in 2026: Will Politics Trump Economic Reform?’ aimed to offer clarity amid uncertainties, context during transitions, and guidance for decision-making.

In response to media reports suggesting that the Federal Government had ceased issuing guidelines for the new tax laws, Oyedele clarified that he had instructed his team to procure a printed official copy of the laws from the government printer as mandated by the Acts Authentication Act.

This report had suggested that Oyedele directed the Nigeria Revenue Service (NRS) and the Joint Revenue Board (JRB) to pause action due to the ambiguous final version of the laws.

He explained that while the government printer’s initial publication was considered official by the executive, lawmakers later contested that it did not accurately depict what passed through the National Assembly. Subsequently, the legislature undertook its own examination and issued separate official copies in soft format.

However, Oyedele stated that his team was unable to secure a printed copy from the government printer, as officials claimed that all copies had been collected by the National Assembly and would remain unavailable to the public until lawmakers completed their review process.

Meanwhile, during a media briefing in Lagos, Akabueze indicated that the significant gap in Nigeria’s tax revenue has compelled the government to push for an expanded tax base, enhance enforcement measures, and increase the efficiency of tax administration.

Scheduled for January 24 at RCCG Christ Church in Gbagada, Lagos, the upcoming summit aims to equip attendees with strategies and insights to navigate the evolving economic landscape of Nigeria. Akabueze, an RCCG pastor, emphasized that Nigeria is currently experiencing one of the most substantial cycles of reform in its history, encompassing areas such as taxation, fiscal policy, exchange rate governance, and market liberalization.

The summit is expected to feature the Minister of State for Industry, Trade, and Investment, John Enoh, as the keynote speaker, who will discuss the current administration’s economic reform initiatives and available investment opportunities.