Tax Reforms Need Accurate Reporting, Oyedele Tells Media

……Urges Business Journalists to Reframe Nigeria’s Tax Reforms, Warns Against Misinformation

Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Dr. Taiwo Oyedele, has urged business journalists to report Nigeria’s ongoing tax reforms with accuracy and context, warning that misleading narratives could weaken investor confidence and distort public understanding of one of the country’s most far-reaching economic policy shifts in decades.

Oyedele made the call at a workshop for business journalists in Lagos, where he faulted reports suggesting that Nigeria’s corporate income tax discourages foreign direct investment (FDI). According to him, such narratives ignore key facts and recent policy changes.

“The corporate income tax rate has been 30 per cent since 1996,” Oyedele said. “What the new tax laws are doing is reducing it to 25 per cent. That is a major reform that should be attracting investment, not scaring it away.”

He warned that consistently negative framing of policy reforms, even when they are progressive, can worsen economic outcomes by shaping public perception and investor behaviour.

Media, Sentiment and the Economy

Oyedele stressed that media narratives play a powerful role in economic performance, noting that countries that successfully manage investor confidence often do so through disciplined communication.

“You can have strong reforms, but if they are constantly reported negatively, the benefits will be delayed or lost,” he said, adding that journalists should balance criticism with facts and data.

He appealed to the media to report with national interest in mind, arguing that Nigeria remains the only true home for its citizens despite global mobility.

Why Reform Became Unavoidable

Providing context, Oyedele said Nigeria was on the brink of fiscal and economic collapse before the current reform push. He cited weak revenue generation, multiple exchange rates, scarcity of foreign exchange for manufacturers and the accumulation of debt driven by high subsidy costs and monetary financing.

According to him, government revenues were largely consumed by debt servicing, while trillions of naira were printed to cover fiscal gaps, fuelling inflation and eroding purchasing power.

Overhauling an Outdated Tax System

Oyedele described Nigeria’s tax framework as obsolete, arguing that the problem was structural rather than administrative.

“Our tax system is built on laws that are decades old,” he said. “We need a system that supports investment, growth and jobs, not one that discourages them.”

He outlined key elements of the reforms, including a reduction in corporate income tax to 25 per cent, expanded VAT exemptions and zero-rating for essentials such as food, education and healthcare, and tax relief for low-income earners and small businesses.

Under the reforms, workers earning ₦100,000 or less monthly are exempt from personal income tax, while many small businesses will no longer pay corporate income tax or VAT.

Addressing VAT and Inflation Concerns

Oyedele dismissed fears that the new VAT regime would increase prices, explaining that zero-rating essential goods would lower production costs and reduce pressure on consumers.

He warned that misinformation could itself drive inflation, as businesses raise prices based on incorrect assumptions rather than actual tax obligations.

Clarifying Tax IDs and Bank Accounts

On concerns about tax identification numbers (TINs) and bank accounts, Oyedele clarified that the requirement is not new and targets high-value transactions, not ordinary Nigerians.

“The focus is on taxable economic activity, not people struggling to survive,” he said.

Capital Market Impact

He also referenced the negative impact of speculative reporting on capital gains tax, which he said contributed to a sharp market sell-off and significant losses for investors.

According to him, data-driven reporting is essential to avoid panic and protect market stability.

Call for Responsible Business Reporting

Oyedele urged journalists to interrogate policies thoroughly and seek expert clarification before publication, reminding them that informed reporting is critical to the success of reforms.

“These tax reforms are designed to promote fairness, stimulate growth and expand opportunities,” he said. “The media has a responsibility to ensure Nigerians understand what is changing and why.”

Dr. Taiwo Oyedele, Chairman of Nigeria’s Presidential Tax Reform Committee, urges business journalists to report tax reforms accurately, highlighting corporate tax cuts, VAT relief, SME incentives and the dangers of misinformation to investment and economic growth.