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Fuel subsidy removal cannot transform Nigeria’s $50bn economy.
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Taiwo Oyedele insists on broad tax reforms to drive infrastructure growth.
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Warnings issued against policy reversals draining trillions of naira.
Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms has warned that savings from Nigeria’s fuel subsidy removal remain grossly insufficient to transform a $50bn annual budget serving over 200 million citizens.
Speaking in Abuja at a one-day training on the Nigeria Tax Act 2025, Mr Oyedele said subsidy savings alone cannot finance the level of infrastructure and public services the country urgently requires.
He explained that Nigeria’s fiscal space is too narrow and must be expanded through comprehensive tax reforms that promote fairness, reduce multiple taxation, and secure sustainable funding.
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He dismissed fears of a new fuel levy, clarifying that the five per cent surcharge referenced under the Federal Roads Maintenance Agency (FERMA) Act since 2007 had only been repositioned under the new framework and would not commence without a gazetted order from the Minister of Finance.
He said more than 150 countries allocate fuel levies to road maintenance, warning that Nigeria cannot continue to rely on printed money to fix collapsing infrastructure.
The tax reforms, according to him, will exempt small businesses with less than ₦100m turnover and shield low- and middle-income earners from heavy tax burdens.
He added that food, education and healthcare are now zero-rated for Value Added Tax (VAT) to reduce production costs and stabilise consumer prices.
READ ALSO: Poor Nigerians Bear Tax Burden, Need Relief – Oyedele
Mr Oyedele also cautioned against the recurring culture of policy reversals, citing the demolition of toll gates and reversal of refinery privatisation as examples that had cost Nigeria trillions of naira in lost opportunities and jobs.
He urged the National Assembly to entrench constitutional safeguards that protect fiscal reforms across political cycles.
He added that subsidy removal averted imminent collapse but warned Nigerians to understand that only sustained tax reforms will deliver long-term economic transformation, with tangible household benefits expected to emerge from 2026.
