The Presidential Committee on Fiscal Policy and Tax Reforms has raised concerns over the newly announced External Revenue Service by U.S. President Donald Trump, warning that it could disrupt international trade and complicate the global tax system.
Taiwo Oyedele, the chairman of the committee, shared his thoughts via his X handle on Monday night following Trump’s inauguration, where the U.S. president unveiled the controversial plan.
During the event, President Trump declared, “Instead of taxing our citizens to enrich other countries, we 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 revenue. It will be a massive amount of money pouring into our treasury coming from far.”
In response, Oyedele highlighted the potential implications of the plan, stating, “The 47th President of the United States, Donald J. Trump, announced plans to establish 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, highlighting the importance of our ongoing tax reforms.”
Oyedele emphasized that Nigeria must strengthen its tax reforms to mitigate potential challenges and leverage opportunities arising from such international developments.
Nigeria has been aggressively pursuing tax reform initiatives under President Bola Tinubu’s administration. Recently, President Tinubu transmitted four tax-related bills to the National Assembly, including the Nigeria Tax Bill and the Nigeria Revenue Service Establishment Bill.
These proposals aim to overhaul the country’s fiscal framework but have sparked debates over equity, implementation, and economic implications.
Additionally, the Nigerian Governors Forum (NGF) recently endorsed a revised Value Added Tax (VAT) sharing formula to ensure equitable distribution of resources among states.
The proposed formula allocates 50% of VAT based on equality, 30% on derivation, and 20% on population, a move Oyedele supports.
Speaking at The Platform, an event hosted by The Covenant Nation, Oyedele stressed the importance of gradual implementation of fiscal reforms while considering political factors and the need for compromise.