New tax laws not targeted at informal sector workers, says Oyedele
Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has clarified that Nigeria’s new tax laws are not aimed at burdening informal sector workers, most of whom lack the capacity to pay taxes.
Speaking on Friday during an interactive session with journalists, influencers, and analysts on the recently introduced tax reforms, Oyedele said over 90 percent of operators in the informal economy are merely struggling to survive and should not be taxed.
“This is the reason why Nigeria has ended up introducing multiple taxes, because we are trying to chase people in the informal sector every now and then,” he explained. “More than 90 percent of operators in that sector are just there for survival. They have no capacity to pay taxes and should not be taxed.”
He cited examples of roadside food vendors, vulcanisers, and wheelbarrow pushers, noting that despite working all day, they still remain poor. According to him, President Bola Tinubu has insisted that poverty and capital should not be taxed. “We should not tax seeds but wait for the fruits,” Oyedele added.
The committee chairman further explained that the new laws are designed to tackle tax evasion and improve accountability. He noted that the reforms have tightened structures, introduced stronger oversight, and imposed personal liabilities on officers who fail in their duties.
“These laws strengthen governance and transparency. For instance, FIRS must now present and publish reports which were not being made public before. Whatever the agency is doing today, under the new tax law, it will be better from all angles,” he said.
According to him, the reforms have also blocked leakages by ensuring that all tax revenues go directly into the federation account, rather than accounts controlled by the Federal Inland Revenue Service.
Oyedele stressed that the ultimate goal of the reforms is to rebuild public trust in Nigeria’s tax system by making it more transparent, accountable, and fair.
