Oyedele Explains Why Some Nigerians Are Opposing Ongoing Tax Reforms
Taiwo Oyedele, chairman of the presidential fiscal policy and tax reforms committee, has identified the primary groups opposing Nigeria's ongoing tax reforms and explained the reasons behind their resistance. According to Oyedele, the opposition largely stems from individuals and businesses that have avoided paying taxes for years and now fear that the new reforms will expose their non-compliance.
Years of Weak Enforcement Fuel Resistance
Oyedele linked the current resistance to tax reforms directly to years of weak enforcement and widespread unpaid taxes across the country. He made these remarks during the January business breakfast organized by the Franco-Nigerian Chamber of Commerce and Industry in Lagos, where he addressed concerns about Nigeria's low revenue base and the ongoing reform efforts.
According to Oyedele, resistance to the reforms is largely driven by those who benefited from weak enforcement in the past. He emphasized that the federal government will not compromise Nigeria's future to protect tax evaders, stating clearly that the government is determined to build a tax system where no one is above the law.
Stark Comparison with South Africa's Tax Performance
The committee chairman provided a striking comparison between Nigeria's tax performance and South Africa's revenue generation. He revealed that South Africa generated more than N60 trillion, in naira terms, from personal income tax alone in 2024. This figure exceeds Nigeria's total tax revenue from all sources combined, including petroleum profit tax, company income tax, value-added tax, and various levies collected by federal, state, and local governments.
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 argued that Nigeria still has significant room to improve personal income tax collection.
Nigeria's Revenue Gap and Reform Objectives
The tax reform chairman explained that 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. He suggested that 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.
Oyedele emphasized that the reforms are designed to ensure fairness and accountability in the tax system. He acknowledged that paying taxes is difficult everywhere but stressed that the government cannot compromise long-term national development for short-term convenience.
Implementation Challenges and Public Concerns
The committee chairman 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. He advised Nigerians not to panic regarding the new tax laws, noting that about 99% of Nigerian stock market investors are exempt from the proposed capital gains tax.
It will be recalled that President Bola Tinubu signed four tax reform bills into law on June 26, 2025. Despite calls for suspension, the new tax laws took effect as scheduled on January 1, 2026. The reforms have 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 recently warned that the reform could fail unless it is implemented gradually and with strong consideration for Nigeria's economic and political realities. However, Oyedele remains committed to the reform agenda, insisting that building a fair and effective tax system is essential for Nigeria's future development.
