How tax reforms debates became blessing in disguise- Oyedele
By Ndukaku Ihe
Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has disclosed how the debates that trailed the four sweeping tax reform bills introduced by President Bola Tinubu’s administration in October 2024, turned out to be a blessing in disguise.
While the reforms were designed to modernize the country’s tax system, streamline revenue collection, and eliminate double taxation, they have drawn both strong support and vocal opposition from lawmakers, business owners, state governments and public analysts.
Oyedele, speaking at day two of the Nigeria Spokespersons Summit (NSS), organised by Nigerian Institute of Public Relations (NIPR), described the controversy as a “blessing in disguise,” saying it forced stakeholders and the public to engage deeply with the reforms.
Addressing the initial controversy surrounding the reforms, Oyedele remarked, “We believe that that controversy that was generated comes out to the positive for the reform, because more Nigerians started paying attention to reforms.” He explained that increased public awareness is crucial for successful implementation.
Oyedele underscored the importance of equity in the tax system, advocating for contributions based on citizens’ ability to pay.
“Equity means you treat equal people equally and unequal people unequally. If we ask everybody in Nigeria to pay tax of 5%, Dangote will pay 5% and not know that he has paid. The gateman will pay 5% and borrow money or trek home. So equity means you have to pay attention to the condition of your citizens and ask them to contribute based on their ability and not allowing anybody to live above the law, whether you’re a billionaire, or president, Governor, former this or former that, the moment you start allowing somebody to live above the law, society will break down,” he emphasised.
Oyedele detailed plans to harmonize tax laws and streamline tax collection processes.
He outlined the proposal to eliminate cash payments for taxes, transitioning to digital transactions accessible via mobile phones.
He also highlighted the expected impacts of the reforms on businesses, households, and the government. “These reforms are generally people centered. They are growth focused and efficiency driven… For businesses, for example, reducing their tax volume. For small businesses up to 100 million naira turnover a year, you will not pay tax. Your CIS will be zero percent. We don’t even charge VAT, no withholding tax. Your employees, if they earn up to about 1.1 million naira a year, no personal tax, no PAYE (pays you earn) because those are the vulnerabe people.”
He also addressed VAT reforms, noting the intention to eliminate VAT on essential items. “For VAT, we said, why should people have to pay VAT when they are buying food, when they are paying for education? So, we call those zero rate. What is zero rated? When you say something is zero rated for VAT, it means that you won’t pay VAT on that item and the person that produced the item when they pay VAT to be able to produce it, they will collect the VAT back from the government. So, this is the most transparent form of eliminating VAT on basic consumption. So, food, education attracts zero VAT, then Transportation Housing exempted from VAT.”
To protect vulnerable taxpayers, Oyedele announced the introduction of a tax ombudsman.
Oyedele also emphasised the potential for remote job creation to boost the economy. “One of the reforms also is to provide opportunity for remote job particularly for our young people, because it’s everybody that wants to relocate abroad and is not everybody that needs to relocate abroad. Some people love their country. They want to be here in Nigeria and work virtually for multinationals and earn dollars… We estimate that we should be able to get between one to 2 million jobs for young Nigerians. Imagine one million people today working remotely and earning $1,000 to $2,000 a month. That’s over $1 billion.”
In his response, President and Chairman of Council of the Nigerian Institute of Public Relations (NIPR), Ike Neliaku, emphasised the need for effective communication strategies to address the challenges of tax collection and perception in Nigeria.
“We know how we twist stories, but you see, when you are preaching to the converted, it is very familiar. That’s why you have to work with NIPR. That’s the message,” Dr. Neliaku stated, highlighting the importance of collaborating with the NIPR to change public perceptions of tax reforms.
He noted that the negative perception of tax collectors is deeply ingrained, especially among older individuals. “Everybody that is above 40 years hates tax collectors, whether they come in suits or bicycles with tax; they are enemies, whether they are calm or hot-tempered,” Neliaku observed.
However, he stressed that changing this narrative is crucial. “Changing narratives come in many ways… When you change narrative, narrative is about mindset. You are communicating to people’s inner man, and you are changing them, changing their perceptions, changing their principles, changing what they knew before, and you have been planting a renewed value and a renewed energy,” he explained.
The NIPR President also reiterated the plan of the institute to establish University of Public Relations and Leadership, advising Oyedele’s presidential committee to endow a center or institute dedicated to tax communication as a lasting legacy.
Neliaku also highlighted the power of third-party endorsements, noting that NIPR’s collaboration with other professional bodies amplifies the message.
He emphasised the need for a central communication center to ensure consistent messaging and re-engineer existing mindsets about tax.
