Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has declared that Nigeria’s ongoing economic reforms remain incomplete, stressing the need for urgent and coordinated fiscal and tax adjustments to stabilise the Naira and enhance the operating environment for small and medium-sized enterprises (SMEs).
Speaking during a policy lecture to mark his 50th birthday, themed “Designing Tomorrow – Policy Blueprint and Lessons for the Future,” Oyedele called for a smarter economic strategy anchored on reduced tax burdens, simplified regulations, and targeted support for productive sectors of the economy.
He argued that Nigeria’s current corporate tax rates, when coupled with soaring inflation, amount to a de facto tax on business capital rather than on actual profits, further straining local enterprises already grappling with high costs.
“With high inflation, taxing profits at current rates effectively means taxing capital,” he said, calling for a downward review of corporate tax rates to help small businesses survive and grow.
Oyedele noted that despite Nigeria having similar trade balances with Kenya and South Africa over the last decade, the Naira has depreciated six times more than the currencies of those countries. He attributed this sharp decline to Nigeria’s poor fiscal coordination and weak policy execution.
To reverse this trend, he recommended fiscal measures such as enabling businesses that do not earn in foreign exchange to pay taxes in Naira, thereby reducing pressure on the local currency. He also called for the reduction of import duties on raw materials and the streamlining of excessive regulatory demands that increase production costs and discourage investment.
Digitalization of government systems was another priority he identified, as a means to improve efficiency, reduce leakages, and foster transparency.
Oyedele further urged the government to limit its role to essential functions that the private sector cannot perform, while investing in high-quality, non-inflationary spending that would deliver lasting economic benefits.
According to him, implementing these reforms would help create a more stable, predictable, and competitive business environment for Nigerian enterprises, especially SMEs, which are central to job creation and economic resilience.
His remarks echo growing calls for structural reforms to address Nigeria’s inflationary pressures, foreign exchange volatility, and weak industrial capacity.
