On Monday, the Presidency debunked widespread misconceptions regarding the proposed tax reform bills currently under consideration in the National Assembly, assuring Nigerians that no part of the legislation recommends scrapping key government agencies, including 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 by the Special Adviser to President Bola Tinubu on Information and Strategy, Bayo Onanuga described claims that the reforms would impoverish specific regions or dismantle essential government agencies as baseless and misleading.
According to Onanuga, the tax bills aim to streamline Nigeria’s tax system, enhance the quality of life for citizens, and create a more conducive environment for businesses to thrive.
The reforms are part of President Bola Ahmed Tinubu’s broader Tax and Fiscal Policy Reforms agenda, designed to address long-standing complaints from businesses about the complexities and burdens of multiple taxes.
The current system, according to the Presidency, has made Nigeria less competitive for investment and stifled economic growth, with some companies relocating to other countries due to unfavourable conditions.
Also, the Presidency clarified that Section 59(3) of the Nigeria Tax Bill proposes consolidating certain earmarked taxes imposed on companies into a single tax.
READ ALSO:
This unified tax will be shared with the relevant agencies, including TETFUND, NASENI, and NITDA, as beneficiaries, with funding to be phased out gradually by 2030.
During this transition period, the agencies will have ample time to explore alternative funding sources alongside budgetary allocations, in line with global best practices.
Refuting claims of agency closures, the Presidency emphasized that changing funding structures does not equate to shutting down agencies.
It cited international examples where countries leading in education, science, and technology rely on broader tax revenues rather than earmarked taxes for agency funding.
This approach aims to reduce the financial burden on businesses while maintaining the agencies’ operational effectiveness.
President Tinubu acknowledged the public debate sparked by the reforms and encouraged Nigerians to participate in upcoming public hearings organized by the National Assembly.
These sessions, he noted, would provide a platform for diverse stakeholders, including governors, traditional rulers, civil society groups, and professional associations, to share their perspectives and contribute to shaping Nigeria’s tax and fiscal policies.
The Presidency called for informed and responsible discourse on the bills, urging political actors and commentators to avoid spreading misinformation that could polarize the nation or incite unnecessary tensions.
It reiterated the need for urgent reforms to outdated tax laws to drive sustainable growth and development across the country.
President Tinubu reaffirmed his administration’s commitment to fostering an inclusive and transparent policy-making process.
He emphasized that the tax reforms are crucial to achieving the economic prosperity and improved living standards Nigerians deserve.
