Oyedele clarifies Governors’ involvement in tax reform bills, rejects tax consultants

The Chairman of the Presidential Committee on Tax Policy and Fiscal Reforms, Taiwo Oyedele, has addressed concerns about the inclusiveness of state governors in the development of Nigeria’s tax reform bills and the possibility of employing consultants for tax collection.

Speaking during a town hall meeting hosted by Channels Television on Monday, Oyedele emphasized the committee’s commitment to extensive consultations and clarified misconceptions surrounding tax administration strategies.

Oyedele stated that the committee engaged state governors extensively during the drafting process. He noted that the committee held a session with the Governors’ Forum and conducted individual consultations with governors across the country.

Despite these efforts, some governors have called for additional engagements, which Oyedele assured would continue even after the reforms are enacted.

“We had one session with the governors’ forum. We consulted the governors. They won’t say we didn’t consult them. They are saying we need to consult more, which we agree with, because consideration will never end. Even after passing the bills, you must continue to consult,” Oyedele explained.

Additionally, the committee conducted two sessions with the National Economic Council and a full-day meeting with finance commissioners from all 36 states. These efforts underline the committee’s intent to foster collaboration and transparency in the reform process.

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Addressing rumors about the involvement of private consultants, Oyedele firmly denied any plans to engage firms such as Alpha-Beta Consulting for tax collection. He highlighted the inefficiencies and dependency such arrangements create in Nigeria’s tax system.

“In fact, we had a very interesting debate at the committee level. I wanted to put a language in the law that says no government should use a consultant to collect tax. We think that that is one of the biggest problems in our economy today,” he said.

He further assured, “I can confirm to you 100 percent there is no plan whatsoever in using consultants to do any of this.”

Oyedele pointed out that the Federal Inland Revenue Service (FIRS) possesses the necessary infrastructure, particularly the TaxPro Max platform, to handle tax collection efficiently.

He explained that the system requires only minor adjustments to accommodate the proposed reforms, which will simplify compliance for large corporations like MTN, Dangote Group, and financial institutions.

“All that we need to do once we pass these bills is to go to that system and amend the language, the algorithm, so that next time MTN is filing VAT returns, there is a request that says tell me the state where they have emanated from,” Oyedele said, highlighting the automation and accuracy this approach offers.

Policy experts have lauded Oyedele’s stance on reducing reliance on consultants, noting that it could enhance accountability and streamline Nigeria’s tax administration.

Dr. Oladimeji Adeola, a tax policy analyst, remarked, “Reducing dependency on consultants is a progressive step toward strengthening institutions like FIRS, ensuring that Nigeria’s tax system is both self-reliant and technologically driven.”

However, some analysts have called for sustained dialogue with governors to ensure smooth implementation of the reforms. “The call for more consultation by governors is valid. Effective implementation requires continuous collaboration across all levels of government,” said economist Dr. Ngozi Balogun.

With these clarifications, the tax reform committee seeks to build consensus and address structural inefficiencies, aiming to create a more robust and equitable tax system for Nigeria.