The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has cautioned that the new External Revenue Service introduced by U.S. President Donald Trump could disrupt global trade.
Oyedele shared his thoughts on his X account Monday night, following Trump’s inauguration. During his speech, Trump confirmed plans for the External Revenue Service, stating, “Instead of taxing our citizens to enrich other countries, we will 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 revenues—a massive amount of money flowing into our treasury.”
Taiwo Oyedele
Reacting to the announcement, Oyedele remarked, “The 47th President of the United States, Donald J. Trump, announced plans to create 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, emphasizing the importance of Nigeria’s ongoing tax reforms.”
He added that overhauling Nigeria’s tax system would help the country navigate potential challenges and seize opportunities arising from this development.
Oyedele has been at the forefront of Nigeria’s tax reform efforts. On October 3, 2024, President Bola Tinubu submitted four tax reform bills to the National Assembly: the Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill.
These bills have sparked debates on equity, implementation, and economic impact, reflecting the challenges of balancing national fiscal policies with regional sensitivities. Despite some opposition, the Nigerian Governors’ Forum (NGF) endorsed a revised Value Added Tax (VAT) sharing formula last week to ensure equitable resource distribution.
The new formula proposes allocating 50% of VAT based on equality, 30% based on derivation, and 20% based on population. Oyedele has expressed support for the NGF’s proposal.
Speaking at The Platform, an event hosted by The Covenant Nation on Saturday, Oyedele stressed the need for compromise in implementing reforms. “Reforms require balance, including political considerations. Progress doesn’t always happen in one leap; sometimes, gradual steps are necessary,” he said.
