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- Taiwo Oyedele has said the tax reform bills will be enacted in the first quarter of 202,5 and implementation to begin in July
- He said the bills have benefits for businesses and citizens alike
- Oyedele projected a positive economic outlook in 2025
The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, says the tax reform bills will be signed into law in the first quarter (Q1) of 2024, while implementation will commence in July.
Oyedele disclosed this at the 2025 Lagos Chamber of Commerce and Industry (LCCI) Economic Review and Outlook Conference, held in Lagos, recently.
He noted that the agitations and conversations that have followed the introduction of the bill are not unexpected, given that tax matters directly affect people’s lives.
Oyedele said, “Tax reforms have turned out to be quite interesting for almost the better part of 2024. It is normal to have debates on tax matters because it affects people directly.
“We are engaging with our key stakeholders and believe we are making progress. We do expect that the Tax Bill should be enacted into law before the end of Q1 2025.
“That would give us about three months, 90 days notice, to commence the implementation of the Reform Bills by the second half of the year, by early July.”
Tax reform bills hold benefits for businesses, individuals
Oyedele expressed optimism that the provisions of the bills are aimed at making businesses competitive and enhancing the lives of Nigerians.
He noted that the bills will ensure that small businesses are not burdened with excess taxes, which will enable them to thrive.
“I find the reforms exciting because this is the first time in my adult life that we are focusing on how to make businesses more competitive.
“For instance, how do you reduce their costs? How do we bring down their tax rates? How do we ensure that small businesses can thrive without the excess burden they have been dealing with since? How do we protect the low-income earners in the society? How do we ensure within government some sanity, regarding how revenues are collected, and taxes introduced?
“We do know of government agencies that got their establishment laws amended, and introduced taxes to fund agencies that the private sector has to provide. It was almost like nobody was thinking that these private businesses do not have limitless pockets to be funding everybody and every agency.
“All these are what the bills are out to address. The fact that we are having this national conversation, and it is creating awareness in itself is a win already, and it can really get better,” he added.
Optimistic expectations for 2025
On expectations for 2025, the tax expert projected a positive economic outlook, noting that inflation will moderate and the foreign exchange market will stabilise.
He said, “Overall, I am positive about 2025 and what it holds for our country, for businesses, for individuals, and for families, and by complementing the other initiatives of governments with sound fiscal policies, I think it can only get better.
“We expect that inflation will start to moderate because the factors that push up costs and prices in 2024 are no longer there in 2025. It’s almost like a reset.
“We expect that the exchange rate will be stable in 2025 because the factors pushing the exchange rate have reduced significantly since we now have local refinery capacity and the fact that we’ve cut out some inflation of consumption that we cannot really verify.
“The fact that there will be an inflow of FX into the federation account, and once you stabilise the economy beyond FPI, you will begin to attract foreign investors.
“And as all of that are coming together, that means you will have a stable naira, possibly recovering, and becoming stronger and therefore helping with inflation, helping with businesses, and general conditions of living. I think it’s a year that we are turning the corner for good.”
Tax reforms: Nigeria’s tax system is outdated, backwards, says Oyedele
Meanwhile, TheRadar earlier reported that the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, said Nigeria’s tax system is among the most outdated globally and requires urgent reform,
Oyedele stated this while on Channels Television at the weekend and said Nigeria’s tax system still operates under a 1939 stamp duty law, describing it as “embarrassing.”
