Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has stated that the savings from the removal of fuel subsidy since 2023 were grossly inadequate to meet Nigeria’s development needs.
Oyedele made this assertion while delivering a keynote address at a one-day capacity-building training on the Nigeria Tax Act (2025) for members of the State House Press Corps on Wednesday in Abuja.
“Nigeria’s total annual budgetary outlay is less than $50 billion,” which Oyedele described as insufficient for a nation of over 200 million people.
Oyedele emphasized that even if corruption and waste were completely removed, the resources at the country’s disposal would still be inadequate to transform Nigeria.
He stressed the need for comprehensive tax reforms to reposition the economy for sustainable growth.
Oyedele clarified that the recently debated five per cent fuel surcharge was not a new tax but a provision that has existed in the Federal Roads Maintenance Agency (FERMA) Act since 2007.
The new Tax Reform Law transfers the surcharge to a broader fiscal framework with safeguards for transparency.
The surcharge would not commence automatically in 2026 but requires a commencement order from the Minister of Finance, duly published in the Gazette.
Oyedele emphasised the need for dedicated funding for roads and infrastructure, citing that over 150 countries dedicate fuel-related levies to road maintenance.
Oyedele clarified that there would be no fresh card or registration exercise for the new tax identification system.
Existing National Identification Numbers (NIN) or Bank Verification Numbers (BVN) would serve as tax IDs.
The new tax reforms aimed to provide relief to the majority of Nigerian workers and entrepreneurs, with small businesses enjoying zero percent corporate tax and low- and middle-income earners exempted from several tax burdens.
Oyedele raised concerns about Nigeria’s history of policy inconsistency, warning that constant reversals have cost the nation trillions of naira and undermined reforms.
He urged the National Assembly to support constitutional amendments that will safeguard fiscal reforms against reversal.
