• Oye sees billions of naira realised from faith-based economy

Professor of Public Sector Economics at the University of Lagos, Isaac Nwaogwugwu, has described Nigeria’s new tax policy as a major reform capable of revolutionising the country’s fiscal system, if properly implemented.
  
Also, the Chairman of Alliance for Economic Research and Ethics (AERE), Dele Oye, said bringing the country’s vast faith-based economy into a more formal, transparent and unified tax framework in the new tax regime could unlock billions of naira in additional revenue.
 
Nwaogwugwu, an expert in tax theory and tax policy, spoke yesterday at the 21st Adekunle Kukoyi Memorial Lecture, organised by the Nigerian Institution of Surveyors (NIS), Lagos branch.  
 
Speaking on the theme, ‘Nigeria under the grip of tax reforms: Exploring the politics, economics and geospatial dimensions of the acts’, Nwaogwugwu said the reforms were well-designed and well-intended, with the potential to help the government achieve its expansive fiscal objectives, particularly in addressing Nigeria’s growing fiscal deficit.
 
According to him, the country’s revenue growth has remained sluggish while public expenditure continues to rise exponentially, forcing the government to rely heavily on borrowing to meet its obligations. He noted that such borrowing is unsustainable in the long run, making increased revenue generation inevitable.
 
In his presentation, the professor explained that the new tax policy was structured to protect vulnerable segments of society, while expanding the tax net to include wealthy individuals, previously untaxed groups, and corporate bodies.
 
Chairman, NIS, Lagos State Branch, Adedeji Olanrewaju, described the topic as timely and highly relevant for Nigerians.OYE, who is the immediate past chairman of the Organised Private Sector of Nigeria (OPSN) and Chairman of the Nigeria-Türkiye Business Council (NTBC), said the enactment of the Nigeria Tax Act (NTA) and the Nigeria Tax Administration Act (NTAA) represents the most significant overhaul of Nigeria’s fiscal landscape in decades, with far-reaching implications for religious institutions that have historically operated within a legal grey area.
 
According to him, under the new regime, revenue collection is centralised, definitions of “charitable activities” tightened, and a digital paper trail is mandated for financial transactions, thereby placing the economic activities of churches, mosques and other faith-based organisations under closer regulatory scrutiny.
 
In a paper entitled ‘Harmonising Zakat, WAQF, and Christian Stewardship Under Nigeria’s 2025 Tax Act’, Oye noted that while the 2025 Tax Act promotes modernisation and reduces tax fragmentation, its success in the religious sector depends on the professionalisation of institutional financial desks and a collaborative oversight framework between the Nigeria Revenue Service (NRS) and faith-based stakeholders.
 
He said: “The 2025 Tax Act is not merely a technical adjustment of rates; it is a fundamental reimagining of the social contract between the Nigerian state and its citizens. For decades, religious institutions operated within a grey area of the law, enjoying broad exemptions under the guise of ‘public character’ while occasionally venturing into commercial activities that blurred the lines between sanctuary and shop.”