T he Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has criticized Nigeria’s current tax laws, describing them as unconducive for economic growth.
Oyedele made this statement on Thursday at the inaugural Economic Roundtable and 2025 Macroeconomic Outlook event organized by Agusto & Co. in Lagos.
His remarks come a day after the House of Representatives passed four tax reform bills for a second reading, referring them to the Finance Committee for further review and a public hearing.
‘Too Many Taxes, Too Many Agencies’
Delivering the keynote speech, Oyedele lamented that Nigeria's tax system is hindering business expansion rather than fostering it.
"We found that Nigeria’s tax system is unconducive for growth. We are trying to grow, but we’re struggling, and the tax system is holding us down. There are too many taxes and taxing agencies everywhere you turn," he said.
He further described how businesses, both formal and informal, are burdened with multiple levies.
"It doesn’t matter whether you’re small or big; we tax anything and everything that moves. If it keeps moving, we tax it again, and if it still moves, we tax it even more."
To illustrate the excessive taxation, Oyedele shared an anecdote from a small business owner.
"One woman told me she feels like the Nigerian system is feasting on businesses. If you doubt it, try a simple social experiment—put up a small sign advertising tailoring. Within two days, at least five government agencies will show up, demanding payments for business premises, advertisement levy, and permits—before you even get a single customer."
Oyedele expressed hope that, in the future, government agencies would instead support entrepreneurs by providing access to credit facilities and business development programs.
‘Parallel Market Crisis Can Be Fixed with Fiscal Policy’
On Nigeria’s foreign exchange crisis, Oyedele argued that fiscal policies could stabilize the widening gap between the official and parallel market exchange rates.
"The divergence between the parallel and official exchange rates is a bigger threat than naira volatility itself. A simple tax policy could fix this issue permanently. For instance, imposing a tax on any premium earned in the parallel market would discourage speculative trading."
However, he acknowledged that such a policy might face political resistance.
Calls for Economic Stability and Better Policy Execution
At the event, Agusto & Co. Managing Director Yinka Adelekan emphasized the global economic shifts shaping Nigeria’s development.
Renowned economist Dr. Doyin Salami stressed the need for efficient government spending and outlined four key conditions for economic stability:
- Economic growth must outpace population growth.
- Inflation must remain low and declining (Nigeria’s threshold is between 10-15%).
- Fiscal responsibility must improve, with deficit reduction as a priority.
- Nigeria’s external reserves should remain strong (the only area currently performing well).
Meanwhile, Johnson Chukwu, CEO of Cowry Assets Management, criticized the government’s economic strategy, stating that it is strong on policy but weak on execution.
The event also honored Olabode Agusto, the late founder of Agusto & Co., for his pioneering contributions to Nigeria’s financial sector.
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