Oyedele admits errors in Nigeria’s tax laws

Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, has admitted that Nigeria’s newly enacted tax laws contain errors, revealing that a finance bill is being proposed to address the gaps.

Speaking at the 2026 Annual Conference of the Nigerian Bar Association Section on Legal Practice, Oyedele said the discrepancies stemmed from manual processes and multiple stages of review during the law-making process.

According to him, steps are already underway to correct the identified issues through a new legislative amendment, as the government moves to stabilise the country’s tax framework.

He emphasised that the ongoing reforms are guided by transparency, fairness, and clear policy direction, warning that inconsistency in tax policies could undermine investor confidence.

Finance bill to address discrepancies in newly enacted tax reforms

Oyedele explained that beyond fixing errors, the proposed finance bill is expected to reinforce the core objectives of the tax reform agenda, including fairness and ease of compliance.

He noted that under the previous system, structural imbalances existed, citing how individuals could pay around 19 per cent in taxes, while incorporating the same business could push the burden above 40 per cent—an outcome he described as inconsistent with global best practices.

The tax expert also raised concerns about the impact of taxation on low-income earners, stating that nearly half of working Nigerians earn less than N70,000 monthly and should not be subjected to aggressive tax policies.

The admission follows earlier concerns raised by lawmakers, including Abdulsammad Dasuki, who flagged discrepancies between the versions of the tax laws passed by the National Assembly and those eventually gazetted.

The disputed laws are part of a broader tax reform package signed into law by Bola Ahmed Tinubu in 2025, aimed at improving revenue generation and reducing dependence on oil income.

Oyedele added that the reforms introduce key changes, including the removal of minimum tax for loss-making businesses, exemption of essential goods and services such as food, healthcare, and education from VAT, and consolidation of multiple tax laws into four major legislations.

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He said these measures are designed to create a more equitable tax system while protecting small businesses and low-income earners, even as the government continues to refine the framework through legislative adjustments.