Calls Mount For Federal Government To Halt Planned Tax Reforms
Adebisi Oderinde, a seasoned tax expert and CEO of AOC-Adebisi Oderinde & Co, has publicly urged Nigerian President Bola Tinubu to reconsider the proposed tax reforms that could affect Nigeria’s economic landscape. Speaking at the inauguration of his company’s new head office in Kara, Ogun State, Oderinde emphasized the potential negative impact of the reform on small and medium businesses, advocating for a measured approach to allow businesses to stabilize before imposing new tax policies. With over 28 years in the field as a chartered accountant and tax consultant, Oderinde drew attention to the challenging economic climate in Nigeria and argued that immediate tax changes would strain states and businesses alike.
Oderinde raised concerns that the reforms, perceived by some to benefit Lagos State due to its higher revenue generation, would actually hurt the state’s economy. He highlighted that Lagos heavily relies on consumption tax—a source that would be cut by the proposed reforms. Such a change, he said, would curb a critical revenue stream for Lagos and disproportionately affect states with higher reliance on consumption taxes. “Even in Lagos State that everybody thinks the reform will favor, it won’t. It will rather affect Lagos state,” Oderinde stated, pointing to the broader need to avoid reforms that could destabilize the region’s economic structure.
He also discussed the reform’s potential adjustment to the Pay-As-You-Earn (PAYE) tax. Referring to the National Bureau of Statistics’ recent report indicating that PAYE comprises about 63 percent of Nigeria’s total Internally Generated Revenue (IGR) across 36 states plus the FCT, Oderinde cautioned that raising PAYE would financially strain several states. According to him, such changes would impact states more severely than a VAT adjustment, yet much of the current tax reform discourse focuses on VAT.
At the event, Oderinde reflected on the journey of his firm, symbolized by the company’s new logo colors: grey, red, and blue, representing challenges, relief, and breakthroughs, respectively. He expressed gratitude to God for enabling him to complete the head office project, which he initially doubted could be achieved in his lifetime.
The inauguration ceremony drew prominent figures from various sectors, underlining the respect Oderinde commands within his community and industry. Notable attendees included the Alake and Paramount Ruler of Egbaland, Michael Gbadebo, and former Secretary to the Ogun State Government, Taiwo Adeoluwa. Traditional leaders such as the Apena of Egbaland, Alami Bankole, and business dignitaries, including the former Managing Director of Skye Bank Plc, Timothy Oguntayo, were also present. The Chairman of the occasion praised Oderinde for his integrity, while other dignitaries, such as Bishop Dr. James Odedeji, highlighted his commitment to ethical practice in tax consultancy.
In a message aimed at President Tinubu, Oderinde concluded with a piece of wisdom: “The journey of 1,000 kilometers starts with a step, and slow and steady wins the race.” His plea encapsulates the view that patience and prudence in economic policy are essential, especially in times of economic strain, to prevent exacerbating the challenges that Nigerian businesses and states already face.
