Adebisi Oderinde urges Tinubu to delay new tax measures, cautioning on impact to SMEs and state economies
Renowned tax consultant Adebisi Oderinde has called on President Bola Tinubu to reconsider plans for a new tax reform in Nigeria, warning that immediate changes could stifle the growth of small and medium-sized businesses and strain state revenues. Speaking at the opening of AOC-Adebisi Oderinde & Co’s new headquarters in Ogun State, Oderinde argued that the reform would bring unforeseen economic consequences for both Lagos State and smaller regions.
Oderinde, with 28 years in accounting and tax advisory, voiced concerns that the reform may initially seem to favour Lagos State, the country’s economic hub, but could ultimately undermine its finances due to the proposed adjustments in consumption tax and Pay-As-You-Earn (PAYE) tax. “Lagos generates significant revenue from consumption tax, and removing or reducing this could cut deeply into state income,” he warned. “While people think Lagos will benefit, it is not likely to. The reform could inadvertently harm its revenue streams.”
Oderinde advised the government to shelve reform plans until Nigeria’s purchasing power and economic conditions improve, stating, “Nigerians are already grappling with low purchasing power. Raising PAYE will especially burden states reliant on internal revenue, as PAYE makes up 63 percent of states’ revenue, per the 2023 NBS report.” He also highlighted that adjustments to VAT could affect the north more heavily, arguing that tax changes should be postponed until a more stable economic landscape emerges.
During the event, which drew prominent figures from Ogun State, Oderinde shared the journey behind his firm’s new headquarters, reflecting on the symbolic meaning behind its logo’s grey, red, and blue colours, representing the challenges, relief, and successes he has experienced.
Among the dignitaries present were Alake of Egbaland, Michael Gbadebo; former Ogun Secretary Taiwo Adeoluwa; and ex-Skye Bank MD Timothy Oguntayo, who praised Oderinde’sdedication and integrity in Nigeria’s complex tax environment.
