The Presidency has dismissed widespread misconceptions surrounding the proposed tax reform bills before the National Assembly, emphasizing that the legislation is designed to streamline the country’s tax system and enhance economic growth.
In statement issued on Monday, Presidential Spokesman Bayo Onanuga,  categorically stated that no part of the bills recommends the scrapping of key government agencies such as the Tertiary Education Trust Fund (TETFUND), the National Agency for Science and Engineering Infrastructure (NASENI), or the National Information Technology Development Agency (NITDA).
The bills propose that earmarked taxes supporting agencies like NASENI, TETFUND, and NITDA will be phased out by 2030.
However, these agencies will continue to receive funding through budgetary allocations, ensuring their continued operation and effectiveness.
The presidential spokesman assured Nigerians that the proposed reforms would not disproportionately benefit wealthier states like Lagos and Rivers at the expense of others.
Instead, the aim is to create a unified tax structure that supports national development and improves the quality of life for all citizens, especially the economically disadvantaged.
“The tax reform bills will not make Lagos or Rivers more affluent and other parts of the country, as recklessly canvassed, poorer.
“The bills will not destroy the economy of any section of the country. Instead, they aim to enhance the quality of life for Nigerians, especially the disadvantaged, who are trying to make a living.
“Contrary to the lies being peddled, the bills do not suggest that NASENI, TETFUND, and NITDA will 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,” he stated.
Onanuga condemned what he described as deliberate misinformation by some commentators, noting that the tax reform bills have been falsely portrayed as measures that would impoverish certain regions of the country, particularly the North.
He clarified that the bills are intended to alleviate the tax burden on businesses, thereby fostering a more conducive environment for investment and economic development across the entire nation.
One of the central goals of the tax reform bills is to consolidate multiple taxes currently levied on businesses into a single tax framework.
Onanuga highlighted that the current tax regime, characterized by a proliferation of levies to fund various agencies, has hindered Nigeria’s competitiveness in attracting investment.
Many businesses have either downsized or relocated due to the complexity and cost of compliance.
Onanuga stressed that transitioning funding sources does not equate to dismantling these agencies.
He pointed out that no leading nation in education, science, or technology maintains separate taxes exclusively to fund specific agencies.
He argued that Nigeria must adopt international best practices, where taxes are pooled and allocated based on national priorities.
The proposed reform seeks to eliminate inefficiencies and ensure a fair distribution of resources, enabling businesses to thrive and contribute to national development.
Onanuga asserted that President Bola Tinubu welcomed the robust public debate the bills have generated and urged stakeholders, including governors, traditional rulers, civil society groups, and professional associations, to participate in the upcoming public hearings organized by the National Assembly.
He encouraged informed dialogue based on facts rather than emotions, warning against inflammatory rhetoric that could further polarize the country.
He added: “One reason President Bola Tinubu embarked on the Tax and Fiscal Policy Reforms is the need to streamline tax administration in Nigeria and make the operating environment conducive for businesses.
“For decades, businesses, investors, and private sector players in Nigeria have complained of being overburdened by a myriad of taxes and levies, including those earmarked to fund various government agencies and initiatives.
“The multiple taxes complicate the economic environment, making Nigeria uncompetitive for investment and preventing many businesses from growing or continuing their operations.
“Some companies have had to make the rational decision to relocate to other countries.
“We can not continue on this path or wait for 20 years if this country is to deliver the prosperity we need for our people.”
