Key Points

• Adebisi Oderinde urges delay of Nigeria’s tax reforms to allow SMEs time to grow.

• Warners proposed tax hikes, including VAT and PAYE, may worsen Lagos’ financial situation.

• Oderinde celebrates company milestone, emphasizing resilience and divine intervention in completing the new office building.

Adebisi Oderinde, a seasoned tax expert and CEO of AOC-Adebisi Oderinde & Co., has called on President Bola Tinubu to delay the implementation of Nigeria’s proposed tax reform, urging a more measured approach to ensure small and medium-sized enterprises (SMEs) have time to grow.

Tax expert warns of reform risks for Lagos

Speaking at the inauguration of the company’s new headquarters in Ogun State, Oderinde, who boasts over 28 years of expertise in accounting and taxation, underscored the potential risks these reforms pose to the broader economy, particularly for Nigeria’s commercial heart, Lagos.

According to Punch, Oderinde cautioned that while some may believe the reform will benefit the commercial hub, it may, in fact, worsen the state’s financial situation due to existing economic challenges.

Expert warns tax hikes could harm state budgets

Oderinde emphasized that the timing was not right for such a reform, especially as Nigeria grapples with a sluggish economy and low purchasing power among citizens.

He pointed out that any immediate hike in consumption taxes—specifically the Value Added Tax (VAT)—could have damaging repercussions for Lagos, which generates significant revenue from consumption taxes.

Additionally, Oderinde warned that proposed increases in Pay-As-You-Earn (PAYE) taxes could further strain state budgets, particularly in northern regions.

Referring to a 2023 report by the National Bureau of Statistics (NBS), which indicated that PAYE accounts for 63 percent of the total internally generated revenue (IGR) of Nigeria’s 36 states and the Federal Capital Territory, he argued that raising PAYE would have a disproportionate impact on many states, far beyond the potential effects of VAT changes.

New logo unveiled, symbolizing journey of resilience

At the event, Oderinde also discussed the symbolic meaning behind the company’s new logo, which features grey, red, and blue.

According to the CEO, the colors represent the three phases of challenges, relief, and breakthroughs that both he and the company have experienced over the years.

He credited the completion of the office building to divine intervention, noting that he never imagined it would be finished in his lifetime. The event was graced by several prominent dignitaries, including Michael Gbadebo, the Alake and Paramount Ruler of Egbaland; Taiwo Adeoluwa, former Secretary to the Ogun State Government; and Alami Bankole, the Apena of Egbaland.

The ceremony also saw the attendance of Timothy Oguntayo, former Managing Director of Skye Bank Plc and Chairman of the event, who lauded Oderinde for his integrity and steadfast dedication throughout his distinguished career.