Tax expert urges Tinubu to delay tax reforms, citing risks for SMEs, State revenues

Adebisi Oderinde, CEO of AOC-Adebisi Oderinde & Co, has advised President Bola Tinubu to delay the proposed tax reform in Nigeria, warning that it could place additional strain on small and medium-sized enterprises (SMEs) and negatively impact state finances.

Oderinde, a chartered accountant and tax consultant with over 28 years of experience, shared his concerns during the inauguration of his company’s head office in Ogun State.

He pointed out that the tax reforms, intended to streamline revenue collection, could disrupt growth in states reliant on current tax structures, including Lagos.

“Lagos State stands to lose out significantly if the proposed tax reform cancels consumption tax. This tax alone contributes a substantial part of the state’s revenue, which will impact its economy,” Oderinde explained.

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He further noted that the suggested increase in Pay-As-You-Earn (PAYE) tax could destabilize the revenue structure of other states, as PAYE currently accounts for around 63 percent of Internally Generated Revenue (IGR) across the states, according to a recent NBS report.

Oderinde also argued that the present economic challenges have reduced Nigerians’ purchasing power, making it an unsuitable time for such reforms. He urged the government to “listen to the voices of experienced professionals” before implementing changes that could hinder economic recovery.

The inauguration event was attended by high-profile figures, including the Alake and Paramount Ruler of Egbaland, Michael Gbadebo; former Secretary to the Ogun State Government, Taiwo Adeoluwa; the Apena of Egbaland, Alami Bankole; former Managing Director of Skye Bank Plc, Timothy Oguntayo; and several other dignitaries, all of whom commended Oderinde’s contributions to tax integrity and service.