Chairman of the Presidential Fiscal Policy and Tax Reform Committee, Taiwo Oyedele, has reassured Nigerians that the proposed tax reforms were not dictated by President Bola Tinubu or any other individual.

He insisted that the committee’s recommendations were the result of extensive consultations with various stakeholders, including people with disabilities, Nigerians in the diaspora, private sector groups, government institutions, finance commissioners, and governors.

Oyedele stated this on Tuesday in Abuja at the 2024 Tax Conference organized by the Tax Justice and Government Platform in partnership with the Civil Society Legislative Advocacy Centre (CISLAC), ActionAid, Oxfam, and the Centre for Democracy and Development (CDD).

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While stating that nothing was cast in stone and everything was up for debate, Oyedele explained that the committee was guided by national interest and data in making its recommendations.

The proposed tax bills have sparked tensions between the Federal Government and the 36 state governors, with the latter demanding their withdrawal to allow for more consultations.

Despite some governors reportedly softening their stance, Borno State Governor, Prof. Babagana Zulum, has urged his northern counterparts to reject the bills, warning that their implementation could harm the region’s economy.

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Oyedele, however, said the committee cannot propose policy changes based on emotions and sentiments.

His words: “My appeal is that we should not consider these reforms as the reforms of the president. Of course, they are not the reforms of the presidential committee.

“They’re not the reforms of the Federal Inland Revenue Service. They’re the reforms of the Nigerian people. And one thing that I can guarantee you because I always say that the only thing I have working for me is my reputation. The day I lose it essentially means that I’m dead, even if I’m physically alive.

So I can promise you with my reputation that no one, not even the president, no one, either directly or indirectly, dictated anything to our committee.

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“All the recommendations of the committee were the debates of the people who work with us as members of the committee.

“With the extensive consultations we had—people with disabilities, Nigerians in the diaspora, more than 40 private sector groups, government institutions, governors, finance commissioners, heads of internal revenue services, and so forth—were the outcomes of what we presented.

And nothing was cast in stone. Nothing was cast in stone. Everything was up for debate. But we have certain core principles.

“The first one, and the most important, was Nigeria first. Nigeria next. Nigeria at all times. National interest was our number one principle. The second one, which is the second most important, was data. We said, well, emotions are okay. We are human beings; we must be emotional.

“But when we are done, if you come to us with all the emotions, we empathize with you. And when you are done, we say, please, can you send us data? Because we cannot propose policy changes to a country that are based on emotions and sentiments.

It must be data-driven.”

Oyedele further urged Nigerians not to be distracted by the sharing formula of the Value Added Tax (VAT), saying that there are many aspects of the bills that are development-driven.

Executive Director of CISLAC, Auwal Rafsanjani, explained that while the northern governors had formed the strongest opposition voices to the Tax Reform Bills, consultations have shown that the areas of fear and concerns were much more than those of the northern governors alone.

Rafsanjani, who noted that the bills hold the potential to transform Nigeria’s fiscal framework, however, said increasing the VAT rate on “non-essential items” in the current economic climate was unacceptable.

He noted that the burden of the increase would ultimately fall on low-income households who spend a greater share of their income on consumption.

“With diminished purchasing power, skyrocketing food and transport costs, and rising costs of rent and fuel, the proposed zero-rated VAT on these expenses will be countered by the simultaneous VAT hike on non-essential items, whose burden will still be borne by already impoverished Nigerians,” he said.

The CISLAC boss maintained that without a social safety net, “this will worsen already difficult living conditions as a blanket 10 per cent VAT increase will disproportionately impact low-income Nigerians, further deepening inequality.”

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He said rather than an increase in the VAT rate, the government should explore more equitable ways of raising tax revenues by cutting unnecessary tax expenditures like reliefs and waivers given to multinationals, oil companies, and others.

Rafsanjani, who also stressed the need for the government to target high-net-worth individuals, urged the Presidential Committee to provide detailed data on the compliance rate of the current VAT regime and the specific challenges that have contributed to the weak implementation of current VAT exemptions.

Country Director of Oxfam in Nigeria, Regina Afiemo, said Nigeria could raise over $6 billion annually by introducing a modest tax on the wealth of Nigeria’s richest.

Afiemo observed that a fair tax system that ensures the rich contribute their share would allow the government to invest in programs that directly tackle hunger, poverty, and inequality.

“From improving food security to funding education and healthcare, the benefits would be felt across the country. Why now is the time to act? Nigeria is at a turning point.

The government has taken steps to expand its tax base and increase transparency, but current policies—such as VAT increases—have hit low-income families the hardest.

Our report argues that it’s time for a shift in focus,” Afiemo stated.