The Commissioner of Finance for Ekiti State, Akintunde Oyebode, has spoken on Nigeria’s fiscal policy, the country’s long-overdue tax reforms, and the economic outlook for 2025.
Oyebode, in an interview with ARISE NEWS on Monday, provided a comprehensive overview of the measures being taken to optimise revenue, ensure financial transparency, and navigate the economic hurdles ahead from the objectives of the Forum of State Commissioners for Finance to the challenges posed by the country’s outdated tax laws.
He also offered insights into the critical importance of data-driven decision-making and the need for more robust engagement with stakeholders in shaping Nigeria’s fiscal policies.
When asked about the objectives of the Forum of State Commissioners for Finance in Nigeria, Oyebode explained, “It is to organise and work together to ensure that we optimise first revenue optimisation for subnational, think about pair review, pair learning.”
He further elaborated, “We meet every month at FAAC meetings. Our role is to provide third leadership on fiscal and sometimes monetary policy issues, we also help in advising the Nigerian Governors Forum on matters that have to do with fiscal policy and finance.”
He noted the collective responsibility of the forum members, he said , “As a group, we also work in ensuring that we do enough revenue assurance that what ought to come to the federation accounts comes in, and it’s distributed in line with the constitution of the federal republic of Nigeria.”
Turning to the topic of tax reform bills and their impact on subnational governance, Oyebode noted that much of the conversation has been overshadowed by the VAT derivation discussion.
He began, “A lot of the conversation has been overshadowed by the VAT derivation discussion, but I think the first thing is I agree that our tax laws were in need of reform.”
He pointed out that the current tax laws were inherited from colonial rule, stating, “We are working with Tax laws that we are handed over to by the colonial government, these are laws that are century old not fit for purpose and time.”
The Commissioner acknowledged the undeniable need for reform, saying, “The question about reform is undeniable, with reforms there are various levels of engagement and I think the committee did quite a bit of engagement but they could have done a bit more in exposing the draft bills to various stakeholder groups like the Governors Forum, the Commissioners Forum, Joint Tax Board.”
He further highlighted that “one of those bills affected before the bill went to the National Assembly for consideration,” adding, “I think that a large part of why there seems to be a gap in the engagement process.”
In discussing the need for fact-based and data-driven conversations, Oyebode emphasised the importance of presenting solid evidence. “It is also important that we have fact-based, data-driven conversations,” he said.
“We have done some simulations, we do think that at certain levels the disruption may be down to two to three states and one of which is in Lagos and the other is Rivers.”
He underscored the importance of transparency, he said, “I think that it’s important for the stimulation form by the committee to be presented for public scrutiny, so it’s not enough to ask, we have done numbers, we need to show the numbers.”
Oyebode also expressed his concerns about the proposal to increase the derivation percentage. “I think the proposal says derivation should move from 20% to 60%, my view is, that’s a sticky move in one goal.”
He proposed a more strategic approach, suggesting, “Two things can be done, one is that the Revenue Mobilisation and Fiscal Commission should be leading the conversation because constitutionally they have the body that speaks to revenue distribution and the methodology.
“I think they should be taking a more frontal view position as against ad-hoc committee.”
The Commissioner stressed the need for unity, saying, “We shouldn’t cloud the conversation with ethnic or pyramidal sentiments, we lose the opportunity for progress.”
Regarding the role of technology in VAT refunds, Oyebode commented, “As a package, they have some problematic provisions, it’s not substantial on the whole.
“In terms of technology, the simple window for me, it’s a game-changing initiative on the trade side, gives you full viability on trade side and makes it a straight due process, single window.”
He described it as “going to be a massive game-changer for both imports, export for international trade.”
Looking ahead to 2025, Oyebode expressed concern about inflation and the lingering effects of excessive money supply. “I’m still very worried about prices, inflation, I think the money supply overhang hasn’t left us, unlike many people, ours is cost push and we are still suffering from excess money supply over the last 36 months,” he said.
He acknowledged the challenges faced by the Central Bank, stating, “The Central Bank has a tough job on its hands and is still trying to manage that, but I think there are a number of things that are very important for the country.”
Finally, he shared a hopeful outlook for Nigeria’s oil and gas sector: “We need to close a number of big oil and gas investments, if we close two or three big deals, and take production up to 1.6 to 1.7 billion barrels per day consistently, we would see that the macro would continue to improve.”
Boluwatife Enome
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