Abuja – The Presidency has clarified misconceptions surrounding the tax reform bills currently before the National Assembly, dismissing claims that they would lead to the abolition of key agencies such as the Tertiary Education Trust Fund (TETFUND), the National Agency for Science and Engineering Infrastructure (NASENI), and the National Information Technology Development Agency (NITDA).
In a statement issued on Monday, Special Adviser to the President on Information and Strategy, Bayo Onanuga, emphasized that the proposed reforms aim to simplify Nigeria’s tax structure to create a more business-friendly environment, not impoverish any region or sector of the country.
“The tax reform bills will not make Lagos or Rivers more affluent and other parts of the country poorer. Instead, they aim to enhance the quality of life for all Nigerians, especially the disadvantaged,” Onanuga said.
He explained that the reforms seek to consolidate some of the taxes currently earmarked for funding government agencies into a single levy. This will be distributed among beneficiary agencies like TETFUND, NASENI, and NITDA, while allowing them ample time, until 2030, to develop alternative funding streams alongside their regular budgetary allocations.
The statement refuted allegations that the reforms would result in the cessation of operations of these agencies by 2029. “Changing an agency’s funding source does not amount to scrapping it. None of the world’s leading nations in education, science, or technology fund such agencies through separate taxes,” Onanuga noted.
He also criticized attempts by some commentators to misrepresent the bills, accusing them of “polarizing the country” and spreading misinformation. He urged stakeholders to approach the matter with facts rather than “emotions targeted at inflaming passions.”
One of the key drivers of the reforms, according to the Presidency, is the need to address the longstanding grievances of businesses operating in Nigeria. The current tax environment, burdened by multiple levies, has rendered the country less competitive for investment and stifled economic growth.
“For decades, businesses in Nigeria have complained about being overburdened by myriad taxes and levies. This has led some companies to relocate to other countries. We cannot continue on this path if we aim to deliver prosperity for our people,” the statement added.
President Bola Tinubu has encouraged Nigerians to actively engage with the bills through upcoming public hearings organized by the National Assembly. He urged leaders, including governors, traditional rulers, civil society groups, and professional associations, to contribute constructively to the discussions on reforming Nigeria’s tax and fiscal policies.
“The imperative of reforming our tax laws and administration cannot be overstated,” the statement concluded. “These reforms are essential to achieving the growth and development our country needs.”
