Oyedele Explains Why Some Nigerians are Opposing Ongoing Tax Reforms
- Taiwo Oyedele said the government will not compromise Nigeria’s future to protect tax evaders
- He linked resistance to tax reforms to years of weak enforcement and unpaid taxes
- The new tax laws signed by President Tinubu came into effect on January 1 despite opposition
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
Taiwo Oyedele, chairman of the presidential fiscal policy and tax reforms committee, has disclosed the category of Nigerians who are opposed to the ongoing tax reforms and why.
He said they are mostly individuals and businesses that have avoided paying taxes for years, and are troubled that the ongoing reforms will expose them, The Cable reported.
Source: UGC
Oyedele made the remarks at the January business breakfast organised by the Franco-Nigerian Chamber of Commerce and Industry (FNCCI) in Lagos, where he addressed opposition to the ongoing tax reforms and Nigeria’s low revenue base.
According to him, resistance to the reforms is largely driven by those who benefited from weak enforcement in the past.
FG won’t protect tax evaders
He stressed that the federal government will not abandon its tax reform nor sacrifice the future of Nigerians agenda to shield individuals and businesses that evade taxes.
He said the government is determined to build a tax system in which no one is above the law.
South Africa generates more tax revenue than Nigeria
The committee chairman compared Nigeria’s tax performance with South Africa’s, noting that the country generated more than N60 trillion, in naira terms, from personal income tax alone in 2024.
He said the figure is higher than Nigeria’s total tax revenue from all sources combined, including petroleum profit tax, company income tax, value-added tax (VAT), and levies collected by federal, state and local governments.
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Oyedele pointed out that South Africa achieved this with a population of about 60 million taxpayers, compared to Nigeria’s estimated population of 240 million.
While acknowledging that South Africa’s per capita income is higher, he said Nigeria still has significant room to improve personal income tax collection.
According to him, if Nigeria focuses on its top 60 million earners, their income levels would be comparable to South Africa’s average, making stronger tax performance achievable.
He said Nigeria currently collects less than N3 trillion from personal income tax, describing the gap between potential and actual revenue as a key reason behind the pushback against reforms.
Oyedele said the reforms are designed to ensure fairness and accountability, adding that although paying taxes is difficult everywhere, the government cannot compromise long-term national development.
He also addressed concerns about delays in issuing implementation guidelines, explaining that uncertainty over the final gazetted versions of the new laws has slowed the process.
It will be recalled that President Bola Tinubu signed four tax reform bills into law on June 26, 2025. Despite calls for a suspension, the new tax laws took effect as scheduled on January 1.
Source: Twitter
Tax: Nigerians, businesses express concerns
Legit.ng reported earlier that Nigeria’s ongoing tax reform has sparked public concern, with households and businesses expressing anxiety over new compliance demands at a time when Nigerians grapple with economic hardship.
The Centre for the Promotion of Private Enterprise (CPPE) recently warned that the reform could fail unless it is implemented gradually and with strong consideration for Nigeria’s economic and political realities.
Meanwhile, Oyedele advised Nigerians not to panic regarding the new tax laws, stating that about 99% of Nigerian stock market investors are exempt from the proposed capital gains tax.
Source: Legit.ng
