A noted development expert and founder of the Global Initiative for Nigeria Development, Ale Micheal, has expressed his reservations regarding the Chairman, Presidential Committee on Fiscal Policy and Tax Reforms, Mr Taiwo Oyedele’s recent comments on tax reform in Nigeria.
Oyedele, had recently said Nigeria’s budget is too small to fund meaningful development.
He stated this on Monday during an interactive session organised by the House of Representatives on the tax reform bills.
Ale, in a statement made available to journalists on Tuesday, described Oyedele’s stance as confusing, arguing that it undermines the research capabilities of development practitioners globally.
He noted that while citizens are obligated to pay taxes, they simultaneously expect substantive development in return. He posited that hasty implemented tax upgrades could worsen poverty levels, rather than alleviate them.
Ale criticised Oyedele’s narrow focus on comparisons with South Africa and Kenya, stating that referencing these countries solely based on their increased budgetary allocations disregards other critical indices of development.
He called for a broader analysis that includes environmental and social factors alongside economic metrics.
“As a financial analyst, Mr. Oyedele is entitled to his perspective, but it is crucial to remember that budget increase alone does not equate to national development,” Ale noted.
He urged the Federal Government to reconsider its current tax reform initiatives, noting that imposing additional taxes during a time of heightened economy could be detrimental.
Ale cautioned that such reforms might further entrench inequality, with the poor bearing the brunt of the burden while the wealthy benefit.
According to Ale, a more effective approach would involve crafting plans that foster a supportive social and economic environment rather than imposing stringent tax reforms.
He highlighted the need for companies in the upper echelons of society to contribute to public welfare by providing high-quality social facilities, referring to the 02 Arena in the UK, which serves as a model of corporate social responsibility.
Ale, also stressed that budgetary allocations should not only be seen as a path to development but should also be aimed at enhancing research, job creation, and human capital development.
He pointed out that many countries cited by Oyedele have structured development plans, often supported by organisations like UNDP or independent consultants—something he believes is lacking in Nigeria, where budget processes appear ad hoc and disconnected from a coherent development agenda.
Ale concluded by calling for comprehensive reforms in the National Budget and Planning departments at all government levels, along with enhanced monitoring and evaluation mechanisms involving independent validators to ensure accountability and successful project outcomes.
He asserted that without adequate oversight, even substantial financial allocations for infrastructure development are likely to yield limited results.
