Nigeria’s available resources are far too small to transform an economy that must serve over 200 million people, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr. Taiwo Oyedele, has warned.
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Speaking in Abuja on Wednesday at a one-day capacity building training on the Nigeria Tax Act (2025) for members of the State House Press Corps, Oyedele declared that the savings from fuel subsidy removal alone cannot deliver the scale of infrastructure and services required for meaningful national transformation.
“Even if you remove corruption and waste completely, the resources at our disposal are not enough to transform Nigeria. Subsidy savings alone cannot deliver the level of infrastructure and services required. Our fiscal space is simply too small,” he said.
He explained that the combined annual budgets of the Federal Government government, the 36 States, the Federal Capital Territory and all 774 local government areas amount to less than $50 billion, a figure he described as grossly inadequate.
Oyedele further lamented that the subsidy regime had left the federation near collapse, with the Nigerian National Petroleum Company Limited (NNPC) not only failing to remit funds but also mortgaging future crude production to finance petrol imports.
On the controversial 5 per cent fuel surcharge, Oyedele clarified that it is not a new tax but a provision contained in the Federal Roads Maintenance Agency (FERMA) Act since 2007.
He explained that the new Tax Reform Law has integrated the levy into a broader fiscal framework with safeguards for transparency and accountability.
“This surcharge will not commence automatically in 2026. It requires a commencement order from the Minister of Finance, duly published in the Gazette. The intent is to ensure openness and accountability in application, unlike in the past,” he noted, adding that more than 150 countries dedicate similar levies to road maintenance.
He compared Nigeria’s infrastructure-to-GDP ratio of about 30 per cent with South Africa’s 85 per cent, warning that poor transport networks directly undermine productivity.
“You cannot grow an economy when people and goods cannot move around efficiently. The reality is that we need dedicated funding for roads and infrastructure. Subsidy savings will not cover this gap,” he said.
On tax identification, Oyedele assured Nigerians that no new cards will be introduced.
He explained that existing National Identification Numbers (NIN) and Bank Verification Numbers (BVN) will serve as tax IDs, in line with efforts to harmonise identification systems.
He also highlighted the pro-people thrust of the new reforms, noting that small businesses with turnover below ₦100 million will pay no corporate tax, while low- and middle-income earners — about 97 per cent of the workforce — are exempted or relieved from many tax burdens.
In addition, food, healthcare, and education have been classified as zero-rated for VAT, allowing producers to reclaim input costs and ultimately stabilise consumer prices.
The tax reform chief, however, raised concern about Nigeria’s history of policy reversals, which he said have cost the country trillions of naira.
He cited the demolition of toll gates and the reversal of refinery privatisations as costly missteps that continue to haunt the nation.
“Our democracy must be structured to outlive political cycles. Otherwise, we waste sacrifices, and the country pays a heavy price. Reform is not about one administration; it must be institutional,” he urged, calling on the National Assembly to safeguard fiscal reforms against arbitrary levies and reversals.
Oyedele appealed to the media to report fiscal reforms responsibly, warning against narratives that could undermine progress.
“The subsidy removal stopped an imminent economic collapse, but it is only the beginning. The wider tax reforms are meant to create fairness, remove multiple taxation, and provide sustainable funding for infrastructure. If we stay the course, the benefits will begin to manifest at the household level from 2026,” he assured.
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