Fact-Check: Did Tinubu, Oyedele Oppose Buhari Administration’s Plan to Increase VAT?
Recent screenshots circulating on social media allege that President Bola Ahmed Tinubu and Taiwo Oyedele, the current Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, previously opposed the former President Muhammadu Buhari’s administration’s plan to increase the Value-Added Tax (VAT).
One of the images prominently displays the caption: “Tinubu opposes the Buhari administration’s plan to increase VAT.”
The debate over President Tinubu’s stance on tax reform has reemerged amid discussions surrounding the Tax Reform Bill 2024. This bill, which has progressed to its second reading in the National Assembly, has sparked significant criticism and allegations of hypocrisy directed at the president.
The Tax Reform Bill 2024, introduced by the executive branch, seeks to create a unified fiscal framework governing taxation in Nigeria. If passed by the legislative bodies, the bill is set to take effect on January 1, 2025, and proposes an increase in VAT from 7.5% to 15% by 2030.
Verification:
To investigate the claims attributed to President Tinubu, the PRNigeria fact-checking team conducted extensive research. This included reverse image searches and keyword searches, revealing that the allegations gained traction alongside the Federal Government’s advocacy for tax reform, igniting intense debate over fiscal policies.
Further investigation revealed that then-APC national leader Tinubu also opposed the VAT increase. During the 11th colloquium. for his 67th birthday at the International Conference Centre in Abuja on March 28, 2019, Tinubu was quoted as saying, “An increase in VAT will reduce the purchasing power of Nigerian consumers and is capable of increasing hardship in the country.” He urged former Vice President Yemi Osinbajo, the then Chairman of the National Economic Council (NEC) and his team to reconsider any plans for a VAT increase.
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Mainstream media outlets at the time widely reported on Tinubu’s opposition to the VAT increase, using various headlines, including “Tinubu Kicks Against Proposed Increase in VAT”
That discourse in 2019 was further inflamed by a series of tweets from Taiwo Oyedele, which also recently resurfaced online. Oyedele’s tweets expressed opposition to a proposed VAT increase by the then Chairman of the Federal Inland Revenue Service (FIRS), Babatunde Fowler, who sought to raise VAT from 5% to between 7.25% and 8.75%. Oyodelr described the then proposal as poorly timed and inconsistent with Nigeria’s economic circumstances at the time. Additionally, Oyedele mentioned that “any increase in VAT rate without a registration threshold and zero-rating of basic consumption will increase the burden on the poor and small and medium-sized enterprises (SMEs),” contradicting the principles outlined in the 2017 National Tax Policy.
Meanwhile, Oyedele as Chairman of Tax Reform panel was quoted in the media as justifying a proposed law to increase VAT from 7.5% to 10% but he was later quoted to deny the move stating that the Federal Government of Nigeria has no plans to increase the Value Added Tax (VAT) rate.
Conclusion:
PRNigeria‘s findings confirm that both President Bola Ahmed Tinubu and Tax Reform Chairman Taiwo Oyedele did indeed oppose the VAT increase proposed under the Buhari administration in 2019.
Therefore, PRNigeria concludes that the assertion that President Tinubu and Chairman Oyedele previously opposed the plan to increase VAT during President Buhari’s administration is TRUE!
By PRNigeria
