The Federal Government has faulted claims that the proposed Tax Reform Bills currently under consideration in the National Assembly will lead to the dissolution of key federal agencies.
In a press statement by Bayo Onanuga, Special Adviser to the President on Information and Strategy, the Presidency clarified that the bills do not recommend the closure of the Tertiary Education Trust Fund (TETFund), the National Agency for Science and Engineering Infrastructure (NASENI), nor the National Information Technology Development Agency (NITDA).
Bayo Onanuga expressed concern over what he called misinformation and politically charged rhetoric surrounding the bills.
Addressing the speculation, he stated, “Contrary to the false claims being spread, the bills do not propose that NASENI, TETFund, and NITDA will cease to exist in 2029 after the bills’ passage.”
Onanuga explained that the tax reforms aim to consolidate certain earmarked taxes on businesses into a single tax, which would then be distributed to these agencies in phases.
He stressed that these agencies would continue to receive funding through budgetary allocations.
“The proposal, as outlined in Section 59(3) of the Nigeria Tax Bill, seeks only to consolidate some of the earmarked taxes on companies and replace them with a single tax to be shared with key agencies as beneficiaries in a phased manner until 2030,” he noted.
The statement also addressed concerns about regional disparities, with Onanuga emphasizing that the reforms would not disproportionately benefit certain regions.
“The tax reform bills will not make Lagos or Rivers wealthier while impoverishing other parts of the country, as has been irresponsibly suggested. The bills will not harm the economy of any region,” he said.
Onanuga further clarified that the reforms are designed to create a more conducive business environment for all Nigerians, particularly the disadvantaged.
He highlighted the long-standing complaints from businesses about Nigeria’s complex tax system, which he said has deterred investment and hindered economic growth.
“The existing tax regime, marked by multiple levies, has made Nigeria less attractive to investors and stunted the growth of businesses. Some companies have even been forced to relocate. This trend must be reversed if we are to secure prosperity for our people,” he stated.
The Presidency urged stakeholders, including governors, traditional rulers, civil society organizations, and the general public to engage in the upcoming public hearings organized by the National Assembly.
Onanuga also cautioned leaders against making inflammatory statements, saying, “At a time when the public looks to leaders for guidance on important matters like the Tax Reform Bills, it is crucial for leaders to exercise restraint in their public remarks to prevent further political division.”
The statement reaffirmed the government’s commitment to fostering an inclusive dialogue on the tax reform bills. Onanuga emphasized the urgency of updating Nigeria’s tax laws, stating, “The need to update our outdated tax laws and administration is clear our current system is ineffective in fostering the growth and development we desire for our country.”
President Bola Tinubu’s administration has positioned the tax reform agenda as a key initiative for simplifying tax administration, attracting investment, and promoting sustainable economic growth.
