The State House has issued a statement clarifying the contents of the transformative tax reform bills currently before the National Assembly, denying claims that the bills recommend scrapping 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). The statement, signed by Bayo Onanuga, Special Adviser to the President on Information and Strategy, emphasized that no provision in the bills would impoverish the North.
The statement addressed the misinformation and deliberate attempts to mislead the public by various political actors and commentators. “Unfortunately, most reactions are not grounded in facts, reality, or sufficient knowledge of the bills,” Onanuga stated. He criticized those who have polarized the country and incited people against lawmakers.
Onanuga clarified that the tax reform bills aim to enhance the quality of life for Nigerians, especially the disadvantaged, and will not make Lagos or Rivers more affluent at the expense of other parts of the country. “The bills will not destroy the economy of any section of the country,” he asserted.
Contrary to the lies being peddled, the statement emphasized that NASENI, TETFUND, and NITDA will not cease to exist in 2029 after the passage of the bills. “Government agencies, such as NASENI, TETFUND, and NITDA, are funded through budgetary provisions with company income tax and other taxes paid by the same businesses that are being overburdened with the special taxes,” Onanuga explained.
President Bola Tinubu’s Tax and Fiscal Policy Reforms aim to streamline tax administration in Nigeria and create a conducive environment for businesses. “For decades, businesses, investors, and private sector players in Nigeria have complained of being overburdened by a myriad of taxes and levies,” the statement noted. The multiple taxes have made Nigeria uncompetitive for investment and have forced some companies to relocate to other countries.
The proposal in section 59(3) of the Nigeria Tax Bill seeks to consolidate some of the earmarked taxes imposed on companies and replace them with a single tax to be shared with key agencies as beneficiaries in a phased manner until 2030. This time frame offers ample opportunity for the affected agencies to explore other funding sources in addition to budgetary allocations.
Onanuga stressed that changing an agency’s funding source does not amount to scrapping it. “None of the countries leading globally in education, science, engineering, or information technology have similar earmarked taxes,” he pointed out. The tax bill seeks to address the problem of overburdening businesses with multiple taxes.
The statement called on relevant stakeholders and public analysts to educate themselves about the bills’ contents and avoid misleading the public. “We may be entitled to our opinions, but such views must be informed and based on facts, not emotions targeted at inflaming passions,” Onanuga urged.
President Tinubu welcomed the public interest in the bills and encouraged leaders across the country to participate in the Public Hearings organized by the National Assembly to present their views on tax and fiscal reforms. “What is never in doubt is the imperative of changing the existing tax laws and administration that have become obsolete and unhelpful in achieving the growth and development we desire for our country,” the statement concluded.
