Presidential Committee Advocates USSD, Digital Tax Payment, Reforms For Efficient Collection

January 24, 2024
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Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has recommended the use of Unstructured Supplementary Service Data (USSD) and other digital channels for tax payments across Nigeria’s three tiers of government.

Oyedele revealed the plan on Wednesday, emphasizing the need to alleviate the burden of numerous existing taxes on citizens.

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Speaking directly, Oyedele highlighted the proposal’s key aspects, including the cancellation of burdensome taxes, the harmonization of justifiable ones, and the digitization of the collection process using USSD.

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He stressed the potential benefits of driving efficiency, reducing leakages, and promoting accountability through this modern approach.

Drawing attention to the current tax landscape, Oyedele pointed out that the multitude of taxes, levies, and charges—especially at the state and local government levels—disproportionately affect small businesses and low-income earners.

He expressed concern about unauthorized taxes and the associated challenges faced by individuals like petty traders, artisans, and transporters.

In a bid to address the social dimension of these reforms, Oyedele presented two options: recruiting and training new personnel for compliance or instilling civility in existing collectors.

He advocated for the latter, emphasizing a more sustainable solution to avoid potential backlash and social crises.

“The success of our reforms lies in finding a win-win outcome for all stakeholders,” Oyedele asserted, inviting criticisms and actively seeking feedback from the public.

He emphasized the Committee’s openness to engaging with diverse perspectives, reinforcing the commitment to creating a tax system that benefits both the government and its citizens.

Emmanuel Ochayi
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