Oyedele’s 2019 Tweets Against VAT Hike Resurfaces Online
The Federal Government’s proposed Tax Reform Bills have triggered a wave of controversy following the resurfacing of 2019 tweets by Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms.
The tweets, which criticized a Value Added Tax (VAT) increase under the Buhari administration, have fueled a heated debate on the government’s current fiscal policy direction.
In the 2019 tweets, Oyedele slammed the Federal Inland Revenue Service (FIRS) under Babatunde Fowler for proposing a VAT hike from 5% to between 7.25% and 8.75%.
He described the move as poorly timed and harmful to Nigeria’s fragile economy, warning that it would lead to higher inflation, increased unemployment, and further impoverishment of Nigerians.
This is the same Tax Messiah championing the tax reforms under BAT, proposing a VAT increase to 10%, 12%, and 15%, but strongly opposed the increase from 5% to 7.5% under Buhari, saying it’s a bad timing. 😅🤣 So, which was a better time, Buhari’s 2019 or BAT’s 2024? https://t.co/W7qfgwiwpf pic.twitter.com/wzfnIIHFvo
— S𝖆𝖑𝖊𝖊𝖒 𝕭𝖆𝖜𝖆 (@saleem_bawah) December 3, 2024
“Contemplating an increase in VAT rate now is bad timing and inconsistent with current economic reality. VAT rate increase will lead to higher inflation, interest rate hike, more unemployment, and generally make people poorer,” Oyedele had tweeted.
Fast forward to 2024, Oyedele’s committee has recommended a progressive VAT increase from the current 7.5% to 15% by 2030, sparking accusations of inconsistency. Critics argue that Oyedele’s earlier stance contradicts his current position, especially given the economic challenges facing Nigerians today.
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One social media user, Saleem Bawa, questioned Oyedele’s credibility, tweeting, “This is the same Tax Messiah championing tax reforms under BAT, proposing a VAT increase to 10%, 12%, and 15%, but strongly opposed the increase from 5% to 7.5% under Buhari. So, which was a better time—Buhari’s 2019 or BAT’s 2024?”
However, Oyedele’s supporters have risen to his defense, arguing that his 2019 tweets were taken out of context.
A Twitter user, @Sirjarus, highlighted Oyedele’s call for structural reforms, such as zero-rating of basic goods, as a prerequisite for any VAT increase. “Go down that thread and see what he said should be done before VAT rate increase—zero rating of basic consumption. Now, he has the opportunity, and he is proposing both,” he wrote.
Speaking in May, Oyedele reiterated his commitment to protecting vulnerable groups and businesses.
He emphasized that the proposed VAT reforms include safeguards, such as exempting food, education, and medical services from taxation.
“We would ensure that the VAT rate adjustment doesn’t affect basic consumption. Essential goods and services will carry zero percent VAT,” he said.
Despite these assurances, the reforms have faced backlash from various quarters. Borno State Governor, Babagana Zulum, criticized the proposal during a television interview, describing it as disproportionately favorable to states like Lagos and Rivers at the expense of the North.
“The bill will only benefit Lagos and Rivers States while impoverishing others, especially the northern region,” Zulum argued.
In response, the Presidency dismissed Zulum’s claims. Special Adviser to the President on Information and Strategy, Bayo Onanuga, stated that the reforms are designed to improve the quality of life for Nigerians, especially those in vulnerable circumstances.
“These reforms are designed to enhance the quality of life for Nigerians, especially the disadvantaged, who are trying to make a living,” Onanuga said.
Sodiq Lawal is a passionate and dedicated journalist with a knack for uncovering captivating stories in the bustling metropolis of Osun State and Nigeria at large. He has a versatile reporting style, covering a wide range of topics, from politics , campus, and social issues to arts and culture, seeking impact in all facets of the society.
