Oyedele proposes lower corporate tax to boost economy

Barbara Bako, Abuja

Chairman of the Presidential Committee on Tax Reforms, Mr. Taiwo Oyedele, has called for a reduction in corporate tax rates, regulatory streamlining, and a restructured tariff system to drive investment and foster sustainable economic growth in Nigeria.

Oyedele made the call during a public lecture held on Wednesday in Abuja as part of events to mark his 50th birthday.

He emphasized the urgent need for an orderly, equitable tax system, warning that chaotic tax policies often place a heavier burden on the poor. According to him, the ongoing tax reform agenda includes full income tax exemptions for over one-third of Nigerian workers, higher exemption thresholds for small businesses, and the zero-rating of essential goods to alleviate the cost of living.

“We must create a tax environment that attracts investment, supports local businesses, and reduces the cost of inputs through lower tariffs on raw materials and intermediate products,” Oyedele said.

He noted that policy direction must be guided by credible data and national interest, rather than sentiments or sectional considerations. He also emphasized the importance of inclusive economic policies and prioritizing investment in human capital.

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According to Oyedele, tax reforms should include incentives for priority sectors, promote export growth, and provide tax relief to Nigerian companies operating internationally. He also recommended modernizing income tax laws to attract remote work and digital economy opportunities for Nigerian youths.

On the role of government, he advised: “The government should focus on areas the private sector cannot effectively handle and collect only the minimum tax necessary to maintain quality public services. Spending should be non-inflationary and focused on areas that deliver the highest value.”

He further highlighted the importance of public engagement in governance, urging citizens to be informed, ask questions, and offer constructive criticism aimed at national development.

Oyedele also stressed the need for policies that support a stable and strong Naira. He suggested allowing businesses to pay taxes in Naira even when earning foreign exchange, particularly in cases where Nigeria has a comparative trade balance.

Lamenting the current state of Nigeria’s tax system, he described it as outdated, overly complex, and prone to widespread evasion, with low taxpayer morale and inefficient administration.

He concluded by calling for a shift toward inclusive and data-driven policymaking to ensure long-term national prosperity.