Taiwo Oyedele is the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms (PCFPTR), under President Bola Tinubu. A former partner at PwC Nigeria, Oyedele has played a pivotal role in shaping tax reform discussions under the current administration. He has emphasised practical solutions to address inefficiencies in Nigeria’s tax system and policy formulation to enhance overall effectiveness.
Oyedele’s appointment in July 2023 signalled the administration’s commitment to transforming Nigeria’s outdated tax system, which has resulted in one of the world’s lowest tax revenue-to-GDP ratios, recorded at 9.4% in 2023, according to the IMF. The PCFPTR’s reform goals include modernising and simplifying tax structure, digitalising administration, harmonising revenue collection, and protecting vulnerable citizens through targeted interventions.
The committee’s proposal to exempt minimum wage earners from Pay-As-You-Earn tax while introducing progressive rates for high-income earners indicates a nuanced approach to social equity. The reforms also aim to reduce corporate income tax from 30% to 25% and eliminate multiple taxation to boost business competitiveness. These and other proposed changes are contained in the four tax reform bills President Tinubu transmitted to the National Assembly for consideration in September 2024.
However, Oyedele’s technocratic vision faces resistance from state governors, particularly regarding proposed changes to Value Added Tax (VAT) allocation. The proposed formula, which suggests reducing the federal government’s share from 15% to 10% while increasing state allocations based on where goods and services are consumed, has sparked concerns about revenue distribution, especially among northern governors. Critics argue that such significant changes required broader consultation with state leaders to ensure equitable outcomes for all regions.
Despite the tax expert’s assurances that the reforms would benefit 98% of workers and include VAT exemptions for essential items, public scepticism persists due to deep-seated mistrust in government reforms, which have recently lacked human face – despite promises of long-term benefits. As the reform agenda unfolds, Oyedele’s experience would serve as