The Chairman of the Presidential Committee on Fiscal Policy and Tax Reform, Mr. Taiwo Oyedele, has dismissed claims that Nigeria is broke, stating instead that the country is experiencing revenue leakages. Oyedele made this clarification on Tuesday while addressing journalists at the 1st National Revenue Assurance Summit held in Abuja.

The summit, organized by the Nigerian Financial Intelligence Unit (NFIU), brought together representatives from all states of the federation and the Federal Capital Territory to discuss ways to optimize revenue collection.

“I would not say Nigeria is broke; I will say we have revenue leakages,” Oyedele said. He explained that the summit was part of efforts to tackle the challenge, adding, “How do you ensure that the revenue you have is getting to the government, and how are you sure government is using it efficiently for the people?”
He noted that the discussion extended beyond taxation to include the management of government assets, enterprises, and natural resources, including solid minerals. The chairman emphasized the importance of harmonizing these resources to increase revenue.

Oyedele stressed the need for equitable taxation, explaining, “Those who have been paying taxes are mostly the poorest. To protect these people, we plan to give them exemptions and ensure that those with the ability to pay start paying.” He argued that it is in the enlightened self-interest of the elite and upper middle class to pay taxes: “When they pay, they will no longer need to incur the implicit costs of running local services themselves.”

To address the revenue leakage issue, Oyedele called for collaboration among the federal, state, and local governments, particularly in the areas of data sharing and capacity building. “We need effective and reliable data collection to help all levels of government quickly ramp up revenue,” he said.

He criticized the tendency to celebrate incremental revenue growth from a low base, saying, “We need a leap, not incremental progress. Transformation is what we should aim for.” He also emphasized the importance of prioritizing government spending, ensuring efficiency, and promoting transparency and accountability.

“We are working on frameworks to address these issues, and with the necessary support, there’s no challenge we cannot solve. Nigerians will progressively witness improvements in governance, which will reflect in the quality of their livelihood and well-being,” Oyedele assured.

He added that the goal is not to enforce taxes by requesting voluntary payments but to use data to accurately determine tax liabilities. “Once we have the right data, everyone will pay their taxes without coercion. We are ensuring that small businesses and those who are too poor are not burdened, allowing us to focus on those who can provide maximum revenue,” he said.

The Chief Executive Officer of NFIU, Mrs. Hafsat Bakari, also addressed the summit, highlighting the importance of preventing tax avoidance and evasion. “For governments to build schools, provide healthcare, secure communities, and construct roads and bridges, there should be no room for tax avoidance,” she said.

Bakari revealed that the NFIU, traditionally focused on money laundering and terrorism financing, is now prioritizing tax crimes and revenue assurance. She emphasized the importance of cooperation between the NFIU and state revenue services: “Our analysis shows that most tax evasion happens at the state level, and we are committed to supporting sub-national governments with the financial data they need.”

She reassured state and federal revenue authorities of NFIU’s readiness to provide the support required to enhance revenue collection and address the needs of citizens.