Oyedele assures Nigerians of reforms in budget processing, tax policy
BY MOTOLANI OSENI
Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has assured Nigerians that significant reforms will be introduced in budget processing, the Medium-Term Expenditure Framework, and the Fiscal Strategy Paper in 2025. These reforms aim to support Nigeria’s economic rebasing efforts and strengthen fiscal policies for the year ahead.
Oyedele made these comments at the 2025 Economic Review and Outlook Conference, organised by the Lagos Chamber of Commerce and Industry (LCCI).
He addressed the National Bureau of Statistics’ (NBS) plans to adopt 2019 as the new base year for calculating Nigeria’s Gross Domestic Product (GDP), replacing 2010. This rebasing effort, he explained, would offer a more accurate reflection of Nigeria’s current economic state and improve GDP calculations moving forward.
Rebasing the economy will significantly impact Nigeria’s tax-to-GDP ratio and per capita income measurement, providing a clearer picture of the country’s economic performance.
Oyedele argued that this shift would improve the perception of Nigeria among investors. “Rebasing the economy gives investors a reason to take Nigeria more seriously and invest,” he stated, underscoring the importance of this step for improving investor confidence. Additionally, the rebased Consumer Price Index (CPI) will better reflect inflation trends and provide a more accurate guide for future monetary policies.
Oyedele also highlighted the ongoing tax reforms and shared that key tax reform bills are expected to be passed into law by the end of the first quarter of 2025. These bills, he noted, include provisions to reduce the tax burden on businesses, improve compliance, and create a more conducive environment for small businesses to thrive. The reforms are designed to make Nigeria a more competitive business destination and to support the growth of the economy.
Looking ahead to 2025, Oyedele projected that inflation would begin to moderate and the exchange rate would stabilise, as many of the factors driving cost increases were expected to dissipate.
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He also forecast that more foreign exchange would flow into the federation account, which could have a positive impact on the economy.
Additionally, Oyedele mentioned the potential introduction of a Producers Cost Index, which would provide better insights into inflation and measure the impact of monetary policies more effectively.
Special Adviser to the President on Economic Affairs, Tope Fasua, discussed the implications of the rebasing, noting that it would lead to changes in the size and structure of the economy and improve the tax-to-GDP ratio.
He also emphasised the importance of optimism, noting that negative perceptions could cost African countries up to £3.2 billion each year. Fasua encouraged Nigerians to promote the country’s image as the cleanest, safest, and most organised nation in Africa.
President of the Manufacturers Association of Nigeria (MAN), Chief Francis Meshioye, represented by Dr. Segun Alabi, stressed the macroeconomic challenges facing the manufacturing sector. These included inflation, Naira depreciation, rising interest rates, and high electricity tariffs.
Meshioye, therefore, called for swift implementation of economic reforms to stabilise key indicators and support the growth of the manufacturing sector.
