Oyedele Begins Work on 2027 Finance Bill, Inaugurates Fiscal Policy Subcommittee

The Federal Government has commenced preparations for the 2027 Finance Bill as the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, inaugurated a subcommittee on fiscal policy and tax reforms.

The subcommittee was inaugurated in Abuja on Wednesday to review the implementation of existing fiscal and tax reforms and develop proposals that reflect current economic realities.

The Finance Bill, which typically accompanies the annual budget, provides the legislative framework for fiscal policies and measures contained in the budget.

Inaugurating the committee, Oyedele tasked its members with ensuring that the 2027 Finance Bill addresses emerging economic challenges while building on the principles of previous reforms.

The committee is chaired by the Permanent Secretary, Raymond Omachi, with Albert Folorunsho serving as co-chairman.

Oyedele stressed that the exercise was not designed to rewrite the 2025 reforms but to assess their implementation, address identified gaps and respond to new developments.

“The Finance Bill 2027 should not be seen as just another annual legislative exercise. Our task is not to rewrite the 2025 reforms, but to preserve their fundamental principles while learning from implementation and responding to new economic realities.

“We must ask where implementation has revealed ambiguity, where unintended consequences have emerged, where compliance can be simplified, and where we can improve investment and competitiveness,” he said.

The minister disclosed that the public call for contributions to the 2027 Finance Bill had so far generated more than 134 online memoranda, alongside several hard-copy submissions.

He said the submissions reflected the importance of allowing businesses, professionals, civil society organisations, academics and citizens to contribute to the development of fiscal policies.

Oyedele described the committee’s assignment as part of the transition from fundamental reform to continuous improvement in Nigeria’s fiscal and tax system.

“No serious reform ends with the enactment of legislation. Good reform is a process, not an event.

“The real test begins when the law meets the economy, as businesses interpret it, administrators implement it, investors respond to it, and citizens experience it,” he said.

According to him, implementation would naturally expose areas requiring clarification, refinement or further reform.

“That is why we are here today,” he added.

Public inputs

Oyedele said the public consultation was deliberately broadened beyond taxation to include fiscal policy and management, public financial management, debt, transparency, capital markets and cross-border capital flows.

“Our fiscal system is more than taxation. It is how we raise revenue, spend, borrow, manage assets, coordinate institutions, and drive inclusive growth,” the minister said.

He said the government had invited businesses, investors, professional bodies, civil society organisations, academia and members of the public to submit practical and evidence-based proposals.

The minister urged the committee to assess the submissions on their merits and base its recommendations on evidence and the national interest.

He also warned against considering fiscal measures solely from a revenue-generation perspective, noting that an intervention designed to increase government revenue could also raise costs across the wider economy.

“The government must optimise the whole economy, not merely achieve a single objective,” he said.

Oyedele further tasked the committee with prioritising competitiveness and productivity by examining measures capable of attracting investment, expanding production, promoting competitive manufacturing and encouraging formalisation.

He also called for greater simplification of the fiscal system, arguing that unnecessary complexity increases compliance costs and creates opportunities for discretion and arbitrage.

Wider mandate

Beyond the 2027 Finance Bill, the subcommittee is expected to review the Deduction of Tax at Source Regulations 2024 in light of the new tax laws.

It will also prepare revised Withholding Tax Regulations and review the Companies Income Tax (Significant Economic Presence) Order 2020.

The committee has been given six weeks to submit its report to the finance minister.