The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has declared that Nigeria’s current tax laws are detrimental to economic growth. Oyedele made this assertion on Thursday during the inaugural Economic Roundtable and 2025 Macroeconomic Outlook event organized by rating firm Agusto & Co. in Lagos.
His comments come just a day after the House of Representatives passed four tax reform bills for a second reading, referring them to the House Finance Committee for further legislative work, including public hearings.
Speaking as a keynote speaker at the event, Oyedele criticized Nigeria’s tax system, describing it as overly burdensome and counterproductive to growth. “We found that Nigeria’s tax system is unconducive for growth. We are trying to grow, but we’re struggling, and the tax system is holding us down. It has too many taxes and taxing agencies everywhere you turn,” he said.
Oyedele highlighted the challenges faced by businesses, particularly small and medium-sized enterprises (SMEs), which he said are overburdened by excessive taxation. “It doesn’t matter whether you’re small or big, formal or informal; we tax anything and everything that moves. If it keeps moving, we tax it again and even more,” he lamented.
He shared an anecdote from a small business owner who likened the Nigerian tax system to “feasting on businesses.” Oyedele challenged attendees to conduct a social experiment: “Put up a banner for a tailoring business, sit back, and watch. Within two days, at least five government agencies will show up demanding payments for business premises, advertising levies, and permits—before you’ve even secured a single customer.”
Oyedele expressed hope for a future where government agencies support businesses rather than burden them. “My dream is that one day, when you put up a banner, government agencies will call to offer credit facilities, capacity development, or other forms of support to help your business prosper,” he said.
On Foreign Exchange and Fiscal Policy
Oyedele also addressed Nigeria’s foreign exchange challenges, stating that fiscal policies could resolve the disparity between the official and parallel markets. He proposed taxing premiums earned from parallel market transactions to curb volatility. “If we impose a tax on any premium earned above the official exchange rate, payable within seven days, we can eliminate the parallel market issue. This is a fiscal solution, but it’s often politicized,” he explained.
Other Key Insights from the Event
Agusto & Co.’s Managing Director, Yinka Adelekan, emphasized the need for Nigeria to adapt to global disruptions, technological innovation, and geopolitical shifts. “We are at a pivotal moment in history where these factors will shape our collective future and national development,” she said.
Renowned economist Dr. Doyin Salami called for efficient government spending and highlighted the instability of Nigeria’s economy. He outlined four conditions for economic stability: output growth exceeding population growth, low and falling inflation, a stable fiscal position, and a healthy external account. “Inflation is high, but food security is an even more pressing issue,” Salami added.
Financial analyst Johnson Chukwu, Group CEO of Cowry Assets Management, criticized the government’s economic approach as “long on policy but weak on execution.”
The event also honored the legacy of Agusto & Co. founder, Olabode Agusto, whose contributions significantly shaped Nigeria’s financial and economic landscape.
