Nigeria’s Tax System Needs Reform

The Group Managing Director, First Holdco Plc, Mr. Adebowale Oyedeji, has said there is the need to reform Nigeria’s tax system.

He spoke during a grand reception organized in Lagos by the Student Pye Alumni in honour of their friends and colleagues who are Oyedeji, and the 60th (Diamond) President of The Institute of Chartered Accountant of Nigeria (ICAN), Chief Davidson Chizuoke Stephen Alaribe, according to a statement on Wednesday. The association (the class of 1990-1994) has members as fellows of the Institute of Chartered Accountants of Nigeria (ICAN) and Chartered Institute of Bankers of Nigeria (CIBN).

Oyedeji also expressed his admiration for his colleagues’ reception.

He said: “The tax to GDP ratio for Nigeria is about 7.1%, for South Africa it’s about 29% and the average for Africa is about 16%. You don’t need a soothsayer to tell you that we need to do something critical about our tax situation. We need a reform and I think the initiative being pursued is a good one.”

Also Read: Why there’s high rate of divorce in Nigeria – stakeholders

The event organisers, Students Pye Alumni class of 1990- 1994; congratulated the two honorees and encouraged them to continue embodying the spirit of excellence, perseverance and resilience that defined their time in Students PYE. In attendance were the then directors of the school including: Ayo Adigun; Bunmi Adeoye Esq; Ademola Omolehinwa; Segun Ojo and Joseph Akeju. Also in attendance were the Oba Akarigbo of Remo land, HRH, Oba Babatunde Adwale Ajayi (FCA), Torungbuwa II; who is also an alumni of the school, and the Commissioner for Finance, Abia State, Uwaoma Ukandu; who represented the Governor of Abia State, Alex Otti.

Also Read: Infrastructure: KWSG Reiterates Commitment, As Community Appreciates Govt Presence

The organisers also urged Micro, Small, and Medium Enterprises (MSMEs) in Nigeria to actively participate in the ongoing tax reform debates nationwide.

They stated that by doing so, MSMEs can reap the benefits of the proposed tax bills, which aim to promote economic growth and development, once they are passed into law by the National Assembly.

Alaribe said the Tax Reform Bills currently before the National Assembly, if passed into laws, would expand Nigeria’s revenue stream.

He also harped on the significance of the proposed tax bill in fostering a culture of tax compliance.

The ICAN President also appreciated his colleagues and friends for the warm reception.

He said, “Tax laws, some of them are archaic. This tax reform bill, if passed into law, will try to bring our tax system in line with best practices and also for once, we’ll get it right. I think with what they put in place, if it’s implemented religiously, it will improve our revenue drive, it will also improve the way we act, our consumption pattern, and the Nigerian economy.”

Also Read: Kwara: NG-CARES Social Transfer Flags-off Enrollment Exercise in Ilorin West/South LGAs

The Chairman of the Presidential Fiscal Policy and Tax Reforms, Mr Taiwo Oyedele, while delivering a keynote address on: “Understanding the Nigeria Tax Reforms,” called for collaborative efforts between government agencies and stakeholders regarding the proposed tax reforms bill, currently before the National Assembly.

He said it is imperative to ensure tax deductions for start-up expenses incurred within six years before commencement of business.

He opined that this would foster entrepreneurship and support new businesses.