Trump: Nigeria urgently needs a revamped tax system –Oyedele

By Chinwendu Obienyi

Following concerns about plans made by President Donald Trump to establish an external revenue service to impose tariffs and taxes on other countries, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele has stated that Nigeria urgently needs a revamped tax system.

During his inauguration speech on Monday, Trump announced the creation of an external revenue service to collect tariffs from foreign countries exporting goods to the United States.

“I will immediately begin the overhaul of our trade system to protect American workers and families. Instead of taxing our citizens to enrich other countries, we will tariff and tax foreign countries to enrich our citizens.

For this purpose, we are establishing the external revenue service to collect all tariffs, duties, and revenues. It will be massive amounts of money pouring into our treasury, coming from foreign sources. The American dream will soon be back and thriving like never before, to restore competence and effectiveness to our federal government.” , Trump declared.

But in a swift reaction to the President’s speech, Oyedele speaking via his X handle, criticized the move for its potential to disrupt global trade and complicate tax systems.

“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.” , he said.

Regarding how Nigeria can mitigate the impact of this development on its economy, Oyedele emphasized that Nigeria must urgently revamp its tax system to mitigate the potential negative impacts and capitalize on opportunities arising from such global shifts. By revamping our tax system, we can better navigate potential challenges and seize any opportunities this development may present,” he added. Trump’s announcement follows his threat last month to impose 100% tariffs on Brazil, Russia, India, China, and South Africa (the BRICS nations) if they create a new BRICS currency or back any other currency to replace the US dollar as the world’s reserve currency. With this development, there is an urgent need for restructured tax system as it could help Nigeria navigate these global economic changes more effectively.

Moreso, by strengthening its fiscal framework, Nigeria could become more resilient to external pressures, including tariff measures and shifts in trade partnerships.

This underscores the importance of adaptive and forward-thinking fiscal policies in a rapidly evolving global economy.