Kehinde Fajobi
Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, has warned that the external revenue service announced by U.S. President Donald Trump could destabilise global trade.
Oyedele expressed this concern on his X handle on Monday night following Trump’s inauguration as the 47th U.S. President.
During his address, Trump declared, “Instead of taxing our citizens to enrich other countries, we tariff and tax other countries to enrich our citizens.
“For this purpose, we are establishing the External Revenue Service to collect all tariffs, duties, and revenue. It will be a massive amount of money pouring into our treasury coming from far.”
Reacting to the development, Oyedele noted, “The 47th President of the United States, Donald J. Trump, announced plans to establish an External Revenue Service to impose tariffs and taxes on other countries.
“This move could disrupt international trade and further complicate the already complex global tax system, highlighting the importance of our ongoing tax reforms.”
He added that Nigeria’s tax reforms are critical to navigating potential challenges and exploring opportunities created by such global changes.
Oyedele has been spearheading efforts to revamp Nigeria’s tax system. On 3 October 2024, President Bola Tinubu submitted four tax reform bills to the National Assembly.
These bills—Nigeria Tax Bill, Nigeria Tax Administration Bill, Nigeria Revenue Service Establishment Bill, and Joint Revenue Board Establishment Bill—aim to enhance equity and efficiency in the nation’s tax system.
The proposals have sparked debates over their economic implications and implementation.
However, the Nigerian Governors’ Forum endorsed a revised Value Added Tax sharing formula last Thursday, which aims to promote equitable distribution among states.
The new formula allocates 50% based on equality, 30% on derivation, and 20% on population.
Speaking at The Platform, a forum hosted by The Covenant Nation on Saturday, Oyedele highlighted the importance of gradual progress in reforms.
He stated, “You also need to consider other things, including political considerations. At the end of the day, if you need to move one kilometre, you don’t have to move all of that at once; you can’t even jump one kilometre at once. Maybe sometimes you need to just move gradually.”