In a country grappling with high inflation, currency depreciation, and sluggish investment, Taiwo Oyedele’s call for corporate tax cuts and a sweeping regulatory overhaul deserves serious attention.
His remarks, delivered during a lecture at his 50th birthday and later shared on social media on Saturday, outline a policy blueprint aimed at repositioning Nigeria’s fiscal system for long-term stability, competitiveness, and inclusive growth.
EDITOR’S PICKS
Oyedele, chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, argues that Nigeria’s reform process is still “unfinished business.” That unfinished agenda, he contends, must now focus on making the tax environment more attractive for businesses, particularly by lowering corporate tax rates.
His rationale is rooted in the inflationary climate: when inflation is high, taxing profits at the current rate effectively becomes a tax on capital, undermining reinvestment, job creation, and expansion.
High Taxes, Low Confidence
Nigeria’s corporate tax burden is among the highest in sub-Saharan Africa. Oyedele does not merely criticise this fact, he links it directly to the country’s stagnant investment climate and weak economic expansion. Lowering corporate tax rates, in his view, would stimulate private sector activity and attract much-needed capital into the economy.
According to the latest Balance of Payments (BoP) report of the Central Bank of Nigeria (CBN) seen by EKO HOT BLOG, foreign direct investment (FDI) sharply dropped by 19.35%, falling from $310 million in Q4 2024 to $250 million in Q1 2025, indicating a deeper erosion of investor confidence in Nigeria’s business environment.
The same report reveals a $2.37 billion drop in external reserves, down to $37.82 billion as of March 2025, a 5.9% decline in just three months, limiting the CBN’s ability to defend the naira.
Oyedele’s proposal gains weight when compared with Nigeria’s weakening currency. According to the economist, despite maintaining a comparable trade balance over the past decade with peers like Kenya and South Africa, the Nigerian naira has lost six times more value than the Kenyan shilling or South African rand.
In his estimation, better-managed fiscal and tax policies could have placed Nigeria on the path to becoming a $1 trillion economy with a more robust middle class and more affordable essential services like fuel and electricity.
Regulatory Overreach: The Silent Killer
Another central pillar of Oyedele’s argument is the need to confront regulatory overreach. He characterises Nigeria’s current tariff structure as punitive, especially for raw materials and intermediate goods, which he says are taxed at double the average rate for sub-Saharan Africa. This not only discourages local manufacturing but also drives up the cost of production across industries.
By advocating for a “refined” tariff system and a leaner regulatory architecture, Oyedele implies that Nigeria’s economic barriers are self-imposed.
“Addressing our tariffs and regulatory hurdles is the equivalent of granting waivers from all income and consumption taxes,” he argues.
Aligning Reform with Currency Stability
Oyedele also makes the case that fiscal reform must go hand-in-hand with currency stability. Among his suggestions are limiting discretionary foreign exchange demands and ensuring that all taxes are payable in naira. This policy coherence, he contends, is vital for reversing the naira’s downward spiral and restoring macroeconomic confidence.
He notes that one-third of Nigerian workers in both the public and private sectors now benefit from full income tax exemptions under the recent reforms. Other achievements include higher exemption thresholds for small businesses, reduced input costs, streamlined tax compliance, and incentives for sectors with export potential.
Notably, his team has also introduced measures to boost transparency and public trust, such as a tax ombudsman, a beneficial ownership law, and improved asset declaration systems. These tools, Oyedele says, are vital not just for revenue generation but also for tackling corruption, improving governance, and fostering fairness in the system.
FURTHER READING
Perhaps the most sobering part of Oyedele’s analysis is his caution against populism. “After the applause, the pain will remain,” he warns, affirming the idea that feel-good policies often mask long-term structural decay. Instead, he urges both government and citizens to focus on what works: private-sector-driven growth, simplified compliance, and a fair tax burden.
Philip Ibitoye is a Special Correspondent with EKO HOT BLOG. Click here to find daily analysis and critical insight on trending issues in Lagos and other parts of Nigeria.
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