Taiwo Oyedele: FG Will Not Compromise Nigeria’s Future for Tax Evaders

Taiwo Oyedele, who chairs the Presidential Fiscal Policy and Tax Reforms Committee, has declared that the Federal Government will not sacrifice Nigeria’s future in order to shield individuals or organizations that have reaped profits without fulfilling their tax obligations. He maintained that essential reforms are required to address the nation's poor revenue generation.

Speaking at the recent January Business Breakfast organized by the Franco- Nigerian Chamber of Commerce and Industry (FNCCI) in Lagos, Oyedele discussed the opposition to the government's tax reform initiatives and pointed out how Nigeria's tax performance compares unfavorably with that of peer nations.

He referenced South Africa, stating that the country accumulated over ₦60 trillion (in naira) from personal income tax in 2024 alone, a staggering amount that surpasses Nigeria’s total tax revenue from all tax sources combined.

Oyedele elaborated that the revenue Nigeria generates from petroleum profit tax, corporate income tax, value-added tax (VAT), along with taxes collected by federal, state, and local governments, still lags behind what South Africa achieves from a single tax stream.

“South Africa collects this from one tax and a population of about 60 million, as opposed to Nigeria’s 240 million citizens,” he pointed out.

While acknowledging that South Africa has a higher per capita income, he argued that Nigeria possesses the potential to boost personal income tax collection substantially if the system functions effectively.

“If we consider the top 60 million earners in Nigeria, their income levels could be comparable to South Africa's per capita income,” he added.

Oyedele questioned Nigeria's low tax yield, expressing that even a reasonable target should yield far greater revenues than what is currently obtained.

“If we aim for ₦60 trillion and fall short, why not set our sights on ₦30 trillion? The reality is that we only managed to collect under ₦3 trillion. This discrepancy indicates a serious issue,” he commented.

He attributed the vigorous pushback against tax reforms to the interests of a small number of individuals who have benefited from tax evasion, stating that this resistance does not stem from genuine public concern.

“This fervent opposition reinforces our resolve, as those opposing the reforms are not disclosing their true motivations. They are resistant because they have profited for so long without paying taxes,” Oyedele stated.

He affirmed that the reform initiative aims to establish a fair and transparent environment where compliance with tax laws is obligatory and everyone is subject to the same regulations.

“We are putting in place a framework that ensures no one is above the law. We acknowledge that paying taxes can be challenging in any country, and we understand that difficulty, but we will not compromise our nation's future. The stakes are much higher than the interests of any one individual,” he asserted.

On June 26, 2025, President Bola Ahmed Tinubu enacted four tax reform bills into law. Despite pressures from various factions to delay their implementation, these new tax regulations are set to commence on January 1, as intended.