Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr Taiwo Oyedele was at the House of Representatives to brief federal lawmakers on the need to pass the bills on tax reforms arguing that majority of Nigerians stand to gain from the proposed new system of tax administration.
Mr President set up the Presidential Fiscal Policy and Tax Reforms Committee in August, 2023 with three very clear mandates. The first one is on fiscal governance.
For this committee to look at our nation’s finances, revenue, how we spend our money, our borrowing, the terms of those borrowing, and how we coordinate policies amongst fiscal, monetary, and trade, not only at the federal government level alone, but also across sub-nationals so that one level of government is not pulling to the right and another one is pulling to the left, bearing in mind that at the end of the day, governance at all levels is about our people.
The second mandate is revenue transformation. How do we change the narrative for our country? And that includes taxation. That includes government assets. That includes government-owned enterprises. We want NFPs to give us tens of billions of dollars in profit, dividend every year, as well as natural resources, oil and gas, and solid minerals.
The last mandate is economic growth and competitiveness. We are given the mandate to look very closely at why is it that our businesses are struggling? Why is it that Nigeria today does not have like 50 multinational companies that are headquartered in Nigeria? That even when you are not selling crude oil, they are bringing money back home. We have a company in the world today, one of the largest companies, that their turnover alone is more than Nigeria’s GDP multiplied by two.
That’s one company. So why is it difficult for our small businesses to survive beyond five years? Why are they not growing? So those issues, why is it difficult for exporters to export? We spoke to people exporting and they said they have to go through more than 22 permits, approvals, clearance. That takes about two months and they have to pay for every single one of that.
By the time you are done, if you are lucky, your product is still fit for export. In putting the committee together, we’re very, very deliberate in ensuring that the committee is representative. We have over 80 members of eminent, qualified, experienced and patriotic Nigerians from all the geopolitical zones.
We have good representation of women and youths. We had 45 undergraduates from 22 universities across Nigeria working with us at the secretariat and they attend our meetings because we also want to get the views of the young people. We have over 20 government institutions represented.
Level of consultation
We have the organised private sector represented including trade associations, manufacturers, chambers of commerce, small businesses, professional bodies, large and small accounting firms and the civil society. In doing our work, we were very clear that it has to be national interest first, national interest next, national interest at all times. We said to ourselves that if we have a Nigeria that is working, everybody will find a space within a Nigeria that is working.
We were very, very particular about using data. Every single recommendation we have in those four views are driven by data. There was nothing we’re recommending that is emotional.
When we have meetings with our stakeholders, we say to them, give us data because it’s by using data that we can look back many years from now and say we did the best for our country. We also ensure that we have a clear philosophy for our tax system, which is that our tax system must be modern, it must be simple and it must be dynamic. It must enable growth and make Nigeria competitive.
