As Taiwo Oyedele Overreaches Himself
Head of Tax, PwC Nigeria, Mr Taiwo Oyedele
Obinna Chima
The Chair of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr. Taiwo Oyedele, has continued to make remarks that would suggest that the Central Bank of Nigeria (CBN) is now one of the units that come within the purview of the committee he was asked to oversee.
From a recent interview he granted Bloomberg, in which he said that the federal government is planning to introduce new foreign exchange rules that would include cracking down on illegal currency trading by end of 2023, to his comments at the 2023 Nigeria Economic Summit where he informed his audience that the central bank plans to broaden the forex market to allow other participants, including bureau de change and financial-technology companies that provide mobile-money services in the market, Oyedele appears to be overreaching himself.
Prior to his current engagement by the federal government, Oyedele was the West Africa Tax Leader at PwC Nigeria and a member of PwC Global Board for Leadership Development. He was also the Chairman of PwC Nigeria Ethics Committee and nothing suggested that he has had experience working on monetary policy.
For clarity purpose, the committee which he heads has a mandate to review and redesign Nigeria’s fiscal system with respect to revenue mobilisation, quality of government spending and sustainable debt management. In addition, the committee was asked to identify relevant measures that would make Nigeria an attractive destination for investments and facilitate inclusive economic growth.
The CBN, just like most central banks in the world, is the monetary authority with the mandate to formulate and implement monetary policies. Its mandate is different from that of the fiscal arm of the government, which Oyedele is part of. The role of central banks globally involves attaining and ensuring price stability, issuance of legal tender currency, and maintenance of a safe, sound, and stable financial system.
The risk to the CBN’s independence has heightened since this administration assumed office with government officials, such as Oyedele, making pronouncements on monetary policy. This is what the Yemi Cardoso-led CBN must work to checkmate to avoid sending the wrong signals to investors. There must be a clear demarcation between fiscal and monetary policy.
