The Federal Government has commenced preparations for the 2027 budget with a review of fiscal policies and tax reforms that will support the next Finance Bill.
Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, inaugurated the Subcommittee on Fiscal Policy and Tax Reforms in Abuja on Wednesday.
The committee is expected to assess the implementation of existing reforms and develop proposals that respond to changing economic conditions.
The 2027 Finance Bill is expected to provide the legislative framework for fiscal measures contained in the Federal Government’s annual budget.
Oyedele tasked the committee, chaired by Permanent Secretary Raymond Omachi, with Albert Folorunsho serving as co-chair, to ensure that the proposed legislation reflects current economic realities.
The minister said the exercise was not intended to discard the principles of the 2025 reforms.
“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,” Oyedele said.
He said the review should identify areas where implementation had created ambiguity or unintended consequences.
The committee is also expected to examine ways of simplifying compliance and improving investment and competitiveness.
Oyedele disclosed that the government’s public call for contributions to the 2027 Finance Bill had generated more than 134 online memoranda.
Additional submissions were also received in hard-copy format.
According to the minister, the responses demonstrate the importance of allowing Nigerians and other stakeholders to contribute to fiscal policy development.
The consultation covered more than taxation, including fiscal policy and management, public financial management, debt, transparency, capital markets and cross-border capital flows.
Businesses, investors, professional organisations, civil society groups, academics and citizens were invited to submit practical and evidence-based proposals.
Oyedele said the committee should assess proposed measures based on their broader impact on the economy.
He warned that a policy designed to increase government revenue could also raise costs elsewhere in the economy.
“The government must optimise the whole economy, not merely achieve a single objective,” he said.
The minister also directed the committee to consider measures that could improve competitiveness and productivity.
These include attracting investment, expanding production, encouraging competitive manufacturing and supporting formalisation.
He further called for simplification of the fiscal system, arguing that excessive complexity could increase compliance costs and create opportunities for discretion and arbitrage.
The committee’s mandate extends beyond preparing the 2027 Finance Bill.
It will review the Deduction of Tax at Source Regulations 2024 in light of the new tax laws.
The subcommittee is also expected to prepare revised Withholding Tax Regulations and review the Companies Income Tax (Significant Economic Presence) Order 2020.
The 2027 Finance Bill review committee has six weeks to submit its report to the finance minister.
