JUST IN: Presidency clarifies tax reform bills, dismisses claims of agency scrapping

The Presidency has reassured Nigerians that the proposed Tax Reform Bills will not eliminate key agencies like the Tertiary Education Trust Fund (TETFUND), National Agency for Science and Engineering Infrastructure (NASENI), or the National Information Technology Development Agency (NITDA).

Instead, the reforms aim to simplify the tax system, reduce burdens on businesses, and attract investments.

Recall that AFRIPOST had reported the contentious bills, coupled with the unwavering stance of the Borno State Governor, Babagana Zulum.

However, in a statement issued on Monday, December 2, 2024, Bayo Onanuga, Special Adviser to President Bola Tinubu, emphasized that the bills consolidate multiple taxes into a single levy while ensuring agencies remain adequately funded through budgetary allocations.

“The tax reform bills will not enrich Lagos or Rivers at the expense of other regions, as falsely claimed. Nor will they destroy the economy of any part of the country,” the statement read. “Instead, these reforms aim to improve the quality of life for Nigerians, particularly those striving to make a living.”

Addressing concerns about the future of TETFUND, NASENI, and NITDA, Onanuga clarified:
“The claim that these agencies will cease to exist by 2029 is completely false. They will continue to receive funding through budgetary allocations sourced from company income taxes and other levies paid by businesses.”

He highlighted that President Tinubu’s tax reforms are designed to streamline Nigeria’s complex tax system, which has long been criticized by businesses and investors.

According to Onanuga, the current system of multiple taxes has discouraged investment, hindered business growth, and prompted some companies to relocate to other countries.

The statement also explained the provision in Section 59(3) of the Nigeria Tax Bill, which consolidates certain taxes earmarked for agency funding into a single levy. The levy will be shared among the agencies in phases until 2030, giving them time to explore additional funding sources.

“It is misleading to equate a change in funding structure to the scrapping of an agency,” Onanuga said. “None of the world’s leading nations in education, science, or technology rely on similar earmarked taxes.”

The Presidency encouraged Nigerians to participate in public hearings at the National Assembly to better understand the reforms and to engage in fact-based discussions, avoiding unnecessary confusion and division.

The reforms, it stressed, are a necessary step toward creating a more competitive economic environment, fostering business growth, and ensuring long-term prosperity for the nation.