FG Willing to Compromise on Controversial VAT Structure, Says Taiwo Oyedele

Taiwo Oyedele, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, has revealed that the Federal Government, under the leadership of President Bola Ahmed Tinubu, is open to revisiting the controversial Value Added Tax (VAT) structure outlined in the ongoing tax reform bills before the National Assembly.

In an interview with Channels Television on Sunday, Oyedele discussed the current state of the tax reform process, which includes four major bills—the Nigeria Tax Bill 2024, the Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill. These bills, introduced in October 2024, are part of the government’s efforts to overhaul the country’s tax system, but they have sparked significant debate, particularly regarding the VAT structure.

Oyedele emphasized that the proposed VAT structure based on the Derivative Principle, which is being promoted in the bills, is designed to benefit all regions of the country. However, he acknowledged the concerns raised by some groups and indicated that if the preference remains for the existing Attribution Principle, the government is willing to accommodate this request.

“We are ready to keep the current VAT formula if that’s what they prefer. That’s non-negotiable for us. Otherwise, we may miss out on a significant opportunity to move Nigeria forward,” Oyedele said. He added that, while the core principle of the VAT reform was vital to the country’s progress, the specifics of the bills are open for discussion and adjustment.

Oyedele’s remarks suggest a willingness on the part of the government to compromise on aspects of the tax reforms to address concerns raised by various stakeholders, signaling that the reform process remains flexible as it moves forward in the National Assembly.