Nigeria’s tax system is among the most outdated globally, urgently needing reform, says Taiwo Oyedele, Chairman of the Presidential Tax Reform Committee. Speaking on Channels Live Television over the weekend, Oyedele criticised the system, which still operates under a 1939 stamp duty law, calling it “embarrassing” and a “big shame.” He warned that efforts to halt the reform process would be a setback for the nation, urging stakeholders to support the tax reform bill without delay.
Oyedele highlighted that fears among state governors and the National Economic Council (NEC) over the reform’s impact on revenue distribution could be addressed without withdrawing the bill. According to him, this bill aims to make the tax system fairer, helping low-income earners, small businesses, and even large firms by reducing corporate income tax rates to stimulate investment. “There is so much at stake,” Oyedele emphasised, stressing the importance of not delaying reforms as Nigeria lacks “the luxury of time.
” A central concern in the reform debate has been the collection of Value Added Tax (VAT). While some governors have pushed for state-level VAT collection, Oyedele warned that such an approach could “lead to chaos.” Allowing states to collect VAT, he argued, would create disparities thereby reducing the revenue some states would collect and potentially hurting businesses.
“If we get a judgment from the Supreme Court today that VAT should be collected and administ.