The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has criticised the federal government’s tax system, stating that there is “nothing to show” for the more than 60 taxes and levies collected across the country.

Speaking at a Senate plenary on Wednesday, Oyedele said the current fiscal framework stifles growth and urged reforms to prevent Nigerian businesses from paying taxes despite recording losses. “We do not want to tax capital or poverty but investment. We are beginning to lose our tax base to other countries. This is why it is urgent to reform the tax system,” he explained.

The session highlighted tensions around President Bola Tinubu’s proposed Tax Reform Bill, which aims to align with broader fiscal reforms and improve tax compliance efficiency. However, the bill has been met with resistance, particularly from Northern leaders and governors of the 19 northern states, who object to proposed changes to the distribution of Value Added Tax (VAT) to a derivation-based model.

Despite calls for its withdrawal by the National Economic Council (NEC), President Tinubu has insisted that the legislative process should proceed, welcoming consultations to address reservations. Presidential spokesperson Bayo Onanuga defended the bill, stating it seeks to create a fairer system that benefits all states.

Oyedele also faced scrutiny at the Senate when the Federal Inland Revenue Service (FIRS) Chair, Zacch Adedeji, and consultants entered the Upper Chamber to explain the bill. A slight uproar ensued, with some lawmakers opposing their entry, citing procedural breaches. The lawmakers resolved to invite the tax reform team for further clarifications on a later legislative date.