…Taiwo Oyedele calls for abolition of multiple taxation

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) put inflows into federation accounts in the last three years, 2023, 2024 and 2025, at over N55 trillion.

The commission attributed the steady rise in revenue flows into the federation’s purse to the impact of fiscal reforms embarked upon by the current administration.

The reforms included the removal of fuel subsidy, floating of forex exchange and reforms in tax collections. The measures, RMAFC revealed on Monday, strengthened fiscal discipline and expanded the revenue pool for allocation to the three tiers of governments – Federal, State, and Local Governments.

RMAFC Executive Chairman Dr Mohammed B. Shehu confirmed updated figures in Abuja at a two-day national stakeholders’ discourse themed: “enhancing fiscal efficiency and revenue growth under the Nigeria Tax Act,2025. The forum was organised by RMAFC.

Providing a breakdown of revenue inflows in three years under focus, Bello, whose commission is responsible for tracking the quantum of revenue inflows into the federation purse for onward sharing to the three tiers of governments, put total gross accruals into the federation account in 2023 and 2024 at N11.9 trillion, N21. 432 trillion respectively, while the ten-month accruals into the Federation Account from January to October 2025 amounted to N23.058 trillion.

Commending President Bola Ahmed Tinubu for initiating bold transformation policy measures, Bello said the removal of subsidy on PMS and other reforms came with an initial severe consequence. He said the president maintains that there was going to be light at the end of the tunnel.

” As I speak today, and based on the economic indices released by the National Bureau of Statistics (NBS), Nigeria is seeing steady growth mainly from its service and non-oil sectors.

“Some recent changes have made the overall economic situation better, albeit many citizens have yet to feel the positive impacts. Inflation rate has consecutively dropped in the last four (4)months (July, 21.88; August, 20.21; September, 18.02 and October, 16.05 per cent). The exchange rate (N/USD) equally remains stable in the same period (July, N1,534; August, N1,528;  September, N1,465; and October, N1,428)”

“On the overall, the GDP continue to grow, particularly from the services sector, making up more than half of the total GDP. Oil still represents over 90% of export earnings and a large part of government revenue, yet it contributes less than 10% to the overall GDP, showing that the economy is moving away from relying solely on oil production. Agriculture provides jobs for nearly 70% of the population but mostly focuses on subsistence farming and faces challenges with infrastructure and security”, he said.

Bello pledged his Commission’s unwavering commitment to monitoring the disbursement of accruals from the federation account to the three tiers of government.

” The Commission, pursuant to its function to ‘monitor the accruals to and disbursement of revenue from the Federation Account’, will remain steadfast in safeguarding the federation’s revenue profile through enhanced monitoring of revenue collections, deployment of forensic audits, strengthening collaboration with Sub-National governments on non-oil revenue mobilisation and reforms to deepen transparency in revenue reporting”, he reaffirmed.

He said the national stakeholders’ discourse was timely, coming close to the commencement of the new tax laws billed to commence in January 2026.

“The Nigeria Tax Act,2025, has not only harmonised the hitherto Nigeria’s fragmented tax laws into a single statute, but it has also reduced or eliminated duplication and obsolete provisions while enhancing ease of doing business.

In addition, once it comes into effect by January 2026, it will reduce compliance burdens, thus creating a more coherent and predictable fiscal environment and eliminating regional differences in tax administration.

In a nutshell, this legislation will serve as a call to action for the Commission in addition to demonstrating the government’s commitment to creating a just, effective, and sustainable revenue system”.

In a slide presentation by the Chairman of the Presidential Tax Reform Committee, Mr Taiwo Oyedele, he notes that roughly about 85 per cent of Nigeria’s resources are assigned to states and local government councils.

He was of the view that fiscal federalism should focus on optimising all revenue resources rather than reallocation or new taxes, e.g personal income tax, to total tax is less than 80 per cent in Nigeria compared to 30 per cent globally. He suggested a more equitable sharing of revenue among all levels of government and between states and local government.

“We must urgently address multiple taxation, power to regulate or control does not mean power to tax”, Ayodele said.