The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has begun preparations for the 2027 Federal Government budget with the inauguration of a subcommittee to develop an implementable Finance Bill.

The Subcommittee on Fiscal Policy and Tax Reforms was inaugurated in Abuja on Wednesday to review the implementation of existing fiscal and tax reforms and develop proposals in response to changing economic conditions.

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

Inaugurating the subcommittee, Oyedele charged members to ensure that the 2027 Finance Bill responds to issues emerging from the implementation of existing reforms.

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

Oyedele said the exercise was not designed to rewrite the 2025 reforms but to retain their core principles while using implementation experience to address new developments.

He said the review should identify areas where implementation had exposed ambiguity or unintended consequences, while also considering ways to simplify compliance and improve investment and competitiveness.

“The Finance Bill 2027 should not be seen as just another annual legislative exercise,” Oyedele said.

The minister disclosed that the public call for contributions to the 2027 Finance Bill had generated more than 134 online memoranda, alongside numerous submissions made in hard copy.

According to him, the responses demonstrated the importance of allowing Nigerians and other stakeholders to contribute to the development of fiscal policy.

Oyedele said the review represented a move from fundamental reform towards continuous improvement, stressing that the effectiveness of legislation becomes clearer during implementation.

He noted that businesses interpret laws, government agencies administer them, investors respond to them and citizens experience their effects, making implementation an important part of the reform process.

The minister said the invitation for public submissions went beyond taxation to cover fiscal policy and management, public financial management, debt, transparency, capital markets and cross-border capital flows.

He described the fiscal system as encompassing how government raises revenue, spends and borrows, manages assets, coordinates institutions and supports inclusive growth.

Businesses, investors, professional bodies, civil society organisations, academics and individual citizens were invited to submit practical and evidence-based proposals.

Oyedele directed the committee to assess submissions based on their merits, evidence and the national interest. He also urged members to consider the wider economic consequences of proposed measures, noting that an intervention intended to increase revenue could also raise costs across the economy.

The committee was further tasked with considering measures that could attract investment, increase production, strengthen manufacturing competitiveness and encourage businesses to formalise.

Oyedele also urged the subcommittee to simplify the fiscal system, saying excessive complexity could increase compliance costs and create opportunities for discretion and arbitrage.

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

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

The subcommittee has six weeks to submit its report to the minister.