Oyedele Confirms Tax Reforms to Begin in July, After National Assembly Deliberation

Speaking at The Platform event organized by The Covenant Nation, Dr. Doyin Oyedele, Special Adviser to President Bola Tinubu on Finance and Taxation, provided insight into the government’s upcoming tax reforms and economic changes. Oyedele confirmed that the tax reform bills, which had faced delays and controversies, would begin implementation in July 2025, following deliberations in the National Assembly. The bills are set to be reviewed after being suspended last year.

President Tinubu had earlier, on October 13, 2024, urged the National Assembly to consider and pass four significant tax reform bills, which have generated substantial opposition, particularly accusations of being biased against the northern part of the country. However, in a recent development, the Nigerian Governors Forum (NGF) has lent its support to the bills and also proposed a new, “equitable” VAT distribution formula.

Regarding the tax reforms, Oyedele stated, “Our expectation is that the bills will be approved by the end of Q1 2025, and we aim to give notice to taxpayers to prepare themselves, with full implementation starting around July 1.” This aligns with the administration’s broader goal of streamlining tax systems to improve revenue collection.

Oyedele also reaffirmed his stance on the removal of fuel subsidies, a key reform introduced by the Tinubu administration. He described the subsidy removal as one of Nigeria’s best decisions, asserting that subsidies were no longer sustainable for the nation. “We were living in window-dressed realities. Our economy was not doing as well as it seemed,” he said. He explained that, despite an ostensibly strong economy, Nigeria’s reality was far from stable due to mounting foreign debts and unsustainable fuel subsidies.

He continued by comparing Nigeria’s situation to that of countries like Sri Lanka and Venezuela, where economic collapse occurred due to similar fiscal mismanagement. “We were borrowing to pay debts, not servicing them properly. If we hadn’t acted, we could have faced the same fate as Sri Lanka or Venezuela,” he warned.

For Oyedele, the removal of fuel subsidies, along with the tax reforms, is part of a broader strategy to set Nigeria on a path to sustainable economic growth. He also pointed out that the country’s GDP growth rate had been stagnant for years, with real growth in the past decade being negative.

As President Tinubu’s reforms begin to take shape, Oyedele expressed confidence that the country is finally moving in the right direction to ensure a more prosperous future for all Nigerians.