Tax Reforms: Development Expert, Michael Ale Calls For Holistic Approach To National Development
Ale Micheal, a noted development expert and founder of the Global Initiative for Nigeria Development, has expressed strong reservations regarding Mr. Taiwo Oyedele’s recent comments on tax reform in Nigeria.
The chairman of the presidential committee on fiscal policy and tax reforms, Taiwo Oyedele, has said Nigeria’s budget is too small to fund meaningful development.
Oyedele stated this on Monday at an interactive session organised by the house of representatives on the tax reform bills.
Ale has however described Oyedele’s report and peer review on the subject as “confusing,” arguing that it undermines the research capabilities of development practitioners globally.
In a statement made available to newsmen on Tuesday and personally signed by him, Ale emphasized that the partial implementation of development strategies—whether micro or macro—disadvantage taxpayers.
He pointed out that while citizens are obligated to pay taxes, they simultaneously expect substantive development in return.
He contended that hastily implemented tax upgrades could worsen poverty levels, rather than alleviate them.
Ale criticized Oyedele’s narrow focus on comparisons with South Africa and Kenya, asserting that referencing these countries solely based on their increased budgetary allocations disregards other critical indices of development.
He called for a broader analysis that includes environmental and social factors alongside economic metrics.
“As a financial analyst, Mr. Oyedele is entitled to his perspective,” Micheal noted, “but it is crucial to remember that budget increases alone do not equate to national development.”
He urged the Nigerian government to reconsider its current tax reform initiatives, arguing that imposing additional taxes during a time of heightened economic strain could be detrimental.
Ale cautioned that such reforms might further entrench inequality, with the poor bearing the brunt of the burden while the wealthy benefit.
According to Ale, a more effective approach would involve crafting plans that foster a supportive social and economic environment rather than imposing stringent tax reforms.
He highlighted the need for companies in the upper echelons of society to contribute to public welfare by providing high-quality social facilities, akin to the 02 Arena in the UK, which serves as a model of corporate social responsibility.
Ale also stressed that budgetary allocations should not only be seen as a path to development but should also be aimed at enhancing research, job creation, and human capital development. He pointed out that many countries cited by Oyedele have structured development plans, often supported by organizations like UNDP or independent consultants—something he believes is lacking in Nigeria, where budget processes appear ad hoc and disconnected from a coherent development agenda.
Ale concluded by calling for comprehensive reforms in the National Budget and Planning departments at all government levels, along with enhanced monitoring and evaluation mechanisms involving independent validators to ensure accountability and successful project outcomes.
He asserted that without adequate oversight, even substantial financial allocations for infrastructure development are likely to yield limited results.
