Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, stated that Nigeria’s current tax laws are detrimental to economic growth.
Speaking at Agusto & Co.’s economic roundtable, Oyedele explained that the tax system is overly burdensome, with numerous taxes and taxing agencies targeting businesses of all sizes, both formal and informal.
He illustrated this point with an anecdote about a small business owner who felt the system was “feasting” on businesses, and he challenged the audience to a social experiment to demonstrate the excessive scrutiny businesses face.
He expressed hope that the system could shift from one of burdensome taxation to one of support and encouragement for businesses.
Oyedele also addressed the issue of the foreign exchange market, suggesting that fiscal policies could be used to stabilize the situation, although he acknowledged that such proposals might be politically unpopular. He proposed a tax on any premium earned in the parallel market above the official rate, arguing that this would address the disparity between the two markets, which he considers a greater danger than naira volatility.
Yinka Adelekan, Managing Director of Agusto & Co., emphasized the importance of understanding global disruptions, technological innovation, sustainability, and geopolitical shifts in shaping the future of national development.
Economist Doyin Salami outlined four conditions for economic stability: output growth exceeding population growth, low and falling inflation, a sound fiscal position, and a healthy external account.
He noted that Nigeria currently struggles with inflation and fiscal position, particularly food security, while only the external account is performing well.
Johnson Chukwu, a financial analyst and Group CEO of Cowry Assets Management, described the government’s economic approach as “long on policy but weak on execution.” The roundtable event served to honor Olabode Agusto, the founder of Agusto & Co., for his contributions to Nigeria’s financial and economic landscape.
