Taiwo Oyedele, Chairman of the Nigeria’s Presidential Committee on Fiscal Policy, has proposed the removal of taxes on essential goods and services, including food items, housing, and public transportation. This proposal aims to ease the financial burden on Nigerian citizens.
Speaking to Channels TV in Abuja, Oyedele stated, “Our proposal is focused on basic necessities—food, accommodation, transportation, education, and health. We’ve identified these items and have recommended removing almost all applicable taxes, including Value Added Tax (VAT).”
The proposal is expected to be endorsed by President Bola Tinubu and subsequently sent to the National Assembly for legislative action. Oyedele emphasized that public transportation, such as buses, would be entirely tax-free, though private hire services like taxis would remain taxable. He explained, “We believe that public transportation should be fully tax-free to make it more affordable. However, we assume that those who use taxis are not among the poorest Nigerians.”
Additionally, the committee has recommended tax incentives to boost employment, such as tax exemptions for companies that increase their workforce and transportation relief for employees. Oyedele noted, “Our aim is to stimulate employment by offering tax relief to employers who expand their staff and provide transportation benefits to their workers.”
This proposal is part of the federal government’s broader tax reform initiative launched by President Tinubu in August 2023, led by Oyedele. The committee’s goal is to develop a tax framework that supports economic growth and stability, which includes potential VAT adjustments and other measures to foster a more robust economy.
