Today is a day of celebration, but it is also a day of reflection and renewed commitment. I am honoured and humbled to stand before you, not just to mark another year in my journey, but to share ideas about the future of our country that demands courage, creativity, and conviction from all of us.
Each birthday reminds us that time moves forward but progress is never automatic. Progress is a choice. And designing tomorrow requires bold moves today. Looking back, the blueprint of progress has always been written by those willing to think differently, act boldly, and serve a cause greater than themselves.
As I woke up this morning, I did not feel different turning 50. So, I am reminded again that life is not about what happens to us but what we make possible.
What I have seen
Let me share with you some of the key findings from our tax reform journey so far. It is true, as Benjamin Franklin once said, that in this world, only two things are certain – death and taxes. Ultimately, we will all pay taxes. We can choose to do it orderly or in a chaotic manner, such as through quantitative easing (printing of money to spend) under the past administration resulting in high inflation and erosion of purchasing power. Also, when the tax system doesn’t work, we often pay more costly implicit taxes. Unfortunately, these chaotic taxes disproportionately impact the poor thereby worsening inequality
Our tax system suffers from archaic laws and a complex administrative structure. There is trust deficit, low tax morale and widespread evasion resulting in a very low tax-to-GDP ratio. Businesses, large and small, are over-burdened with multiplicity of taxes. There is poor accountability for taxes collected and weak fiscal exchange as taxpayers often see little or no benefit. There was also a general lack of policy coordination, overlapping roles and nuisance taxes – some emanating from the constitution.
Tax is no longer just about the social contract; it is a socio-economic covenant. Government policies must not distort legitimate economic activities just as they must not undermine the wellbeing of the people.
Beyond revenue generation, tax reform can help address some of our most pressing national challenges. Imagine a tax intelligent system, with a robust beneficial ownership law, unexplained wealth order, effective assets declaration system, conflict of interest reporting, and ensuring that rules for doing business with the government make sense – from procurement to contracting, payments, regulatory fees, and use of technology – will greatly reduce corruption and improve our society. (In the U.S. you are required to declare assets that you stole to the IRS).
Misinformation and lack of understanding were rampant. Some analysts and even tax professionals did not understand the difference between zero-rated and VAT exemption. Labour unions opposed the tax bills that would benefit workers most.
But perspectives matter. When I told some people about my 50th birthday, a few said it means I am their “aburo,” [meaning a younger one] while some said I am their “egbon” [meaning an older person]. It’s like someone saying you’re tall and another says you’re short. It doesn’t mean you are both, it simply reflects their perspectives.
So, what are the major tax reform measures we introduced?
The tax reforms focused on people, efficiency and growth. Some of the key changes include full income tax exemption for over one-third of all workers in the private and public sector; higher exemption threshold for small businesses; changes to make essential consumption more affordable; reduction in input costs for business; simplifying and rationalizing taxes; addressing distortions by creating a level playing field; priority sector incentives; boosting exports and tax relief to prevent double taxation for international operations. Others are changes to income tax laws to attract remote work opportunities enabling Nigerian youths to thrive in the digital economy; introduction of the tax ombudsman to advocate for a better tax system; attractive tax regime to encourage formalization of businesses and facilitate growth; faster tax refunds and lower withholding tax rates to reduce cost of working capital; making evasion more costly while simplifying compliance; improved accountability and reporting; more revenue and fairer treatment for sub-nationals.
Here are some of the lessons I’ve learnt from the journey so far
This journey has reminded me that boldness is not the absence of fear, but prioritising vision over comfort. Hope or faith is not enough. Intent must be matched by craft. Policies are not what we say but what we actually do.
In comparison, our democracy must offer economic choice, not just political freedom. But unlike politics, popular views do not always lead to sound policies which require credible data over rhetoric or sentiments. If we have everyone at the table but lack credible data, we’re holding a communion, not designing policy.
Humility is important – to know that you do not know it all, and to concede to superior arguments. The good news is that humility is natural, you only need to be yourself. On the contrary it takes some mental energy to be arrogant. Because no one was born raising their shoulders. And being calm enhances your credibility.
Overall, whether it is tax and fiscal reforms, strengthening public institutions, expanding opportunity, or fostering innovation, one truth remains: Great outcomes require intentionality in design, and sincerity of purpose in execution.
Now, my thoughts on the blueprint for tomorrow
Our aspirations must become actionable steps and must be institutionalized as systems that ultimately serve the people. As we look ahead, what should our blueprint for transformative action look like?
First, we must prioritize inclusion and national interest over sectional or self interest. Policies must be people centric, not just statistics, and must be inclusive to incorporate various perspectives ensuring that every voice is heard, and every key stakeholder is included. Contending with the interests of groups and agencies shouldn’t feel like an economic civil war where some actors deploy even government resources to fight reforms designed to benefit all.
Second, we must use credible data for policy. One major shortcoming of democracy is that the majority decides outcomes which do not necessarily work when it comes to making sound policies. Imagine if we conducted a survey of all Nigerian adults and asked if people should pay a tax or not. You can guess what the outcome would be. So, in policy formulation, credible data and evidence should be prioritised over popular views. The biggest test for democracy should be when people and businesses choose to live, work and invest in our country, especially when they have the option to do so elsewhere.
Third, we must invest in people to build capacity and visionary leadership. No nation or institution can rise higher than the people who drive it. Education, innovation, health, and creativity are not luxuries, they are the foundation and building blocks for sustained progress.
Here is my call to action
Dear policymakers, colleagues and friends – we must remember that boldness is a renewable resource. The courage that transforms societies must be nurtured every day – in what we say, how we think, act and lead.
Nations are made by the policies they make. And not having a policy is in fact a policy – of chaos, discretion, and uncertainty.
The elites must apply more intellectual rigor in policy debates, challenge long held theoretical beliefs and question assumptions within context. We must avoid crowd-pleasing analyses because after the applause, the pain will remain.
The government should focus on doing only what the private sector will not do, and collect the least amount of tax in doing so without compromising the required minimum quality standards. The government should be intentional regarding non-inflationary spending, priority and quality of spending.
The people must seek first to understand – ignorance compounds vulnerability, and steals opportunities. We must think independently, ask questions, engage and criticize constructively with the sole aim to build not tear apart our country. To paraphrase Nelson Mandela, wishing that your government fails or thinking ill of your country is like taking poison and then hoping that it magically kills your enemies.
The reforms are not done, we still have unfinished business. We need to lower corporate tax rates on businesses to attract more investments and stimulate expansion. With high inflation, a high tax rate will invariably be taxing capital not profit. We must address regulatory overreach, embrace digitalization, refine our tariffs system to reduce the rates on raw materials and intermediate products which are currently twice the average for sub-Saharan Africa. Addressing our tariffs and regulatory hurdles is the equivalent of granting waivers from all income and consumption taxes. We also need fiscal reforms to complement a strong and stable Naira such as allowing payments of all taxes in Naira, and limiting discretionary forex demands. Despite having a comparable trade balance over the past 10 years as Kenya and South Africa, the Nigerian Naira has lost 6 times more value than either the South African Rand or the Kenyan Shillings. This means Nigeria would have been a one trillion dollar economy today, with much less poverty, expansive middle-class, higher purchasing power, and moderate price increases (fuel, electricity, e.t.c).
Thank you and my final words
My profound appreciation goes to Mr. President for the opportunity to serve our dear nation; to Chief Wale Edun, the Finance Minister & CME, and my brother and friend in this mission – Dr. Zacch Adedeji. Their excellencies the governors for their support, honorable ministers, our distinguished senators and honorable members. All members of the Presidential Fiscal Policy & Tax Reforms Committee, our secretariat staff and volunteers including Tax Club students. And to the patriotic Nigerians who spent their hard earned money and time to help us promote the reform – we are grateful.
To everyone who supported or opposed the reforms – your questions and critiques made us better. The roles you played, your ideas, questions, collaboration and guidance have enriched my path more than I could have imagined or ever hoped for. Words are insufficient to express my gratitude.
Finally, today is not just about celebrating what has been, it is also about affirming what lies ahead. Let us move forward with boldness, wisdom, and hope.
Rather than wait for the future, let’s go out there, and build it.
Thank you and may God bless Nigeria!
