Global trade may be disrupted by Trump’s foreign income agenda, according to Oyedele
Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, has expressed concerns about the potential disruption to global trade caused by the newly announced External Revenue Service by the United States. The announcement was made by former President Donald Trump during his inauguration.
In a post shared on his X handle on Monday night, Oyedele highlighted the implications of Trump’s statement:
“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.”
Oyedele noted that this move could complicate the already intricate global tax system, underscoring the significance of ongoing tax reforms in Nigeria. He emphasized that a revamped tax system would enable Nigeria to navigate challenges and leverage opportunities arising from such developments.
Under Oyedele’s leadership, the Presidential Committee on Tax Reforms has been making strides in reshaping Nigeria’s fiscal policies. On October 3, 2024, President Bola Tinubu submitted four tax reform bills to the National Assembly:
- Nigeria Tax Bill
- Nigeria Tax Administration Bill
- Nigeria Revenue Service Establishment Bill
- Joint Revenue Board Establishment Bill
The proposals have sparked discussions around equity, implementation, and economic impact, reflecting the complexity of balancing national and regional fiscal interests.
Despite some opposition, the Nigerian Governors’ Forum (NGF) recently endorsed a revised Value Added Tax (VAT) sharing formula, which allocates 50% based on equality, 30% on derivation, and 20% on population. Oyedele has voiced his support for the NGF’s proposal, emphasizing the need for fairness in resource distribution.
Speaking at The Platform, an event hosted by The Covenant Nation on Saturday, Oyedele stressed the importance of compromise in implementing reforms:
“You need to consider other factors, including political considerations. If you need to move one kilometre, you don’t have to cover it all at once. Sometimes, gradual progress is the most effective approach.”
