Taiwo Oyedele confirms that the FG will remain committed to tax reforms.

In a recent interview, Mr. Taiwo Oyedele, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, affirmed the Nigerian federal government’s commitment to advancing significant changes in the country’s tax legislation, despite ongoing opposition. He emphasized that these reforms are crucial for enhancing the nation’s revenue, projecting that such changes would result in a doubling of revenue in relation to the gross domestic product (GDP) within the next two to three years.

The proposed reforms, initiated by President Bola Tinubu on October 3, include four critical tax reform bills currently under consideration by the National Assembly. These bills encompass the Nigeria Tax Bill, the Tax Administration Bill, and the establishment of a Joint Revenue Board. Notably, the proposed measures aim to increase the value-added tax (VAT) from 7.5 percent to 10 percent by 2025 and to reduce the company income tax (CIT) from an average of 30 percent to 27.5 percent over the same timeframe. Additionally, high earners may see a rise in their personal income tax (PIT) to 25 percent from approximately 20 percent starting next year.

Another significant element of the proposed reforms involves the dissolution of the Federal Inland Revenue Service (FIRS) in favor of creating a new entity, the Nigeria Revenue Service. This shift aims to streamline tax administration and enhance efficiency within the tax collection framework.

As Nigeria navigates these crucial tax reforms, the government’s resolve to implement them underscores a strategic move towards fiscal sustainability and economic resilience, designed to bolster the nation’s financial health in the coming years.