President Bola Tinubu Establishes Committee on Fiscal Policy and Tax Reforms

Nigeria, tax reforms, fiscal policy, revenue collection, Taiwo Oyedele, PriceWaterhouseCoopers, Bola Tinubu, socio-economic development
President Bola Tinubu

President Bola Tinubu has approved the establishment of a presidential committee on fiscal policy and tax reforms in Nigeria. The committee, chaired by Taiwo Oyedele, fiscal policy partner and Africa tax leader at PriceWaterhouseCoopers (PwC), will comprise experts from both the private and public sectors. The committee aims to enhance revenue collection efficiency, ensure transparent reporting, and promote the effective utilization of tax and other revenues to boost citizens' tax morale, foster a healthy tax culture, and drive voluntary compliance.

Zacchaeus Adedeji, special adviser to the president on revenue, highlighted that Nigeria ranks very low on the global ease of paying taxes, and the country's tax to GDP ratio is one of the lowest in the world and well below the African average. This has led to an overreliance on borrowing to finance public spending, which limits the fiscal space as debt service costs consume a greater portion of government revenue, annually resulting in inadequate funding for socio-economic development.

The committee's primary objective is to transform the tax system to support sustainable development and achieve a minimum of 18% Tax to GDP ratio within the next 3 years without stifling investment or economic growth. The committee will be responsible for various aspects of tax law reform, fiscal policy design and coordination, harmonisation of taxes, and revenue administration.

It is noteworthy that the committee will not only advise the government on necessary reforms but will also drive the implementation of such recommendations in support of the comprehensive fiscal policy and tax reform agenda of the current administration.

In conclusion, the establishment of the presidential committee on fiscal policy and tax reforms is a step in the right direction towards transforming Nigeria's tax system to support sustainable development. It is expected that the committee's efforts will enhance revenue collection efficiency, foster a healthy tax culture, and drive voluntary compliance, leading to socio-economic development and growth.