By: Bayero Ade
The Presidency has dismissed rumors suggesting that the proposed Tax Reform Bills aim to abolish 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). Instead, it explained that the bills are designed to simplify Nigeria’s tax system, reduce business burdens, and encourage investments.
Bayo Onanuga, Special Adviser to President Bola Tinubu, issued a statement on Monday, December 2, 2024, clarifying the objectives of the reforms. According to him, the reforms focus on consolidating multiple taxes into a unified levy while maintaining funding for essential agencies through the national budget.
“The tax reform bills will not create disparities between regions or harm any part of the country’s economy,” the statement read. “They are intended to uplift Nigerians, particularly those striving to improve their livelihoods, by creating a more conducive business environment.”
Onanuga refuted claims that agencies like TETFUND, NASENI, and NITDA would cease operations in 2029. He stressed that these agencies will continue to receive funding through budgetary allocations derived from company income taxes and other levies.
He explained that the current tax system, characterized by multiple levies, has long been a concern for businesses, making Nigeria less attractive for investment and causing some companies to relocate to other countries. The reforms aim to address these challenges by simplifying tax administration and promoting growth.
“Section 59(3) of the Nigeria Tax Bill consolidates certain taxes earmarked for agency funding into a single levy, which will be distributed to the agencies in phases until 2030,” Onanuga stated. “This approach provides ample time for the affected agencies to explore alternative funding sources while remaining supported by the national budget.”
The Presidency stressed that changing how agencies are funded does not equate to scrapping them. Onanuga further highlighted that leading nations in education, technology, and engineering do not rely on earmarked taxes to fund such institutions.
Nigerians were urged to participate in public hearings at the National Assembly to better understand the reforms and contribute to informed, fact-based discussions.
The Presidency reassured the public that the reforms are geared toward fostering a healthier economy, enabling businesses to thrive, and ensuring sustainable growth for the nation.
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