Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has declared that corruption eradication and subsidy savings are nowhere near enough to fix Nigeria’s battered economy.
Speaking in Abuja on Wednesday at a one-day capacity-building training on the Nigeria Tax Act (2025) for State House Press Corps, Oyedele admitted that Nigeria’s revenue base remains too weak to cater to its massive population of over 200 million people.
His words, “Even if you remove corruption and waste completely, the resources at our disposal are not enough to transform Nigeria. Subsidy savings alone cannot deliver the level of infrastructure and services required. Our fiscal space is simply too small.”
According to Oyedele, Nigeria’s total annual budget across all tiers of government is less than $50 billion, a figure he described as dangerously low for such a large country.
He warned that the subsidy regime nearly collapsed the federation, with the NNPC mortgaging future crude production to pay for petrol imports.
On the debated five per cent fuel surcharge, Oyedele clarified it is not a new tax but a provision in the FERMA Act since 2007, now repositioned under the new Tax Reform Law.
“This surcharge will not commence automatically in 2026. It requires a commencement order from the Minister of Finance, duly published in the Gazette. The intent is to ensure openness and accountability in its application, unlike in the past,” he said.
Comparing Nigeria’s poor infrastructure-to-GDP ratio of 30 per cent with South Africa’s 85 per cent, Oyedele stressed the urgency of dedicated funding for infrastructure.
“You cannot grow an economy when people and goods cannot move around efficiently. The reality is that we need dedicated funding for roads and infrastructure. Subsidy savings will not cover this gap,” he warned.
On tax identification, Oyedele assured Nigerians there would be no duplication.
“We are not creating another layer of bureaucracy. If you already have a NIN or BVN, you need not worry. These will serve as tax IDs. The objective is simplification, not complication.”
He highlighted that under the reforms, small businesses with turnover below ₦100 million will pay zero corporate tax, while low- and middle-income earners — about 97 per cent of the workforce — will enjoy relief from multiple taxes.
Food, education, and healthcare are also zero-rated for VAT.
Oyedele cautioned against Nigeria’s history of policy reversals, citing toll gate demolition and refinery privatisation rollbacks as costly mistakes.
“If we had not reversed the sales, Nigeria would have saved over ₦20 trillion and created jobs.”
He urged lawmakers to back constitutional amendments to lock in fiscal reforms and prevent arbitrary levies at state levels.
“Our democracy must be structured to outlive political cycles. Otherwise, we waste sacrifices, and the country pays a heavy price. Reform is not about one administration; it must be institutional.”
Appealing for responsible reporting, he added, “We must focus on facts. The subsidy removal stopped an imminent economic collapse, but it is only the beginning. The wider tax reforms are meant to create fairness, remove multiple taxation and provide sustainable funding for infrastructure. If we stay the course, the benefits will begin to manifest at the household level from 2026.”
