Taiwo Oyedele: Consultation crucial… but tax bills withdrawal may jeopardise legislative process

Taiwo Oyedele, chairman of the presidential committee on tax policy and fiscal reforms, says withdrawing the proposed tax bills may jeopardise the legislative process.

Oyedeles’ position comes nearly a week after the Nigeria Labour Congress (NLC) asked the federal government to withdraw the tax bills (currently before the national assembly) for broader consultation.

Speaking during an interview on Arise Television on Sunday, the tax expert stressed the importance of consultation but noted that legislative processes should continue alongside stakeholder engagements.

“There is no timeline for a bill that gets to the National Assembly for when it must come out. We can decide that these bills must be there for another six months. Whatever you wanted us to do by withdrawing the bill, we can also do it now while the bill is still in process,” Oyedele said.

“We spent 20 years doing the Petroleum Industry Act. That is not a good template to follow, by the way. So I do not see the problem that withdrawing the bill will solve.

“My worry, personally, and I’m not speaking for the president, is that if you withdraw the bills and you want to have this consultation, the consultation will still be frustrated and you will not have the opportunity to return these bills to the national assembly and I say that because, look at the Revenue Mobilisation and Fiscal Allocation Commission. They have been trying to consult on the new formula for sharing federal accounts since 2013, 11 years. They’ve been everywhere. So consultation is good.

“We want to consult. But you have to get to a point where you draw a line and you say, let’s move forward and while we’re moving forward, the opportunity to engage continues.”

The committee chairman said even after the tax laws are enacted, consultations and feedback will remain integral to the process, especially during implementation.

‘NOT IMPLEMENTING TAX REFORM WILL BE MISSED OPPORTUNITY’

Backing President Bola Tinubu’s stance that the tax reforms must move forward, Oyedele said the committee is open to dialogue.

“I agree with the president if he says there’s no going back about the tax reform. I also agree with him on his follow-up comments that says we are willing to discuss. So the whole idea of not doing the reform itself is going to be a missed opportunity,” he said.

“We are happy to discuss. We are willing to discuss. They just need to call us and when we request they should allow us to explain.

“We are not even trying to convince people about our views. We are only just trying to explain. Our view is that once the stakeholders understand, whatever they want us to do, we will do.”

On October 3, 2024, Tinubu asked the national assembly to consider and pass four tax reform bills.

The proposed laws include the Nigeria tax bill, tax administration bill, and the joint revenue board establishment bill.

The president also seeks to repeal the law establishing the Federal Inland Revenue Service (FIRS) and replace it with the Nigeria Revenue Service.

The NEC on October 31, 2024, asked Tinubu to withdraw the tax reform bills from the national assembly to give room for consultations.

However, Tinubu said the bills will not be withdrawn from the legislature as recommended by the NEC.

He said the bills aim to streamline Nigeria’s tax administration processes, completely overhaul the nation’s tax operations, and align them with global best practices.

The senate passed the four bills for a second reading on November 28, 2024.