THE Presidency has dismissed claims that the Tax Reform Bills before the National Assembly will scrap key federal agencies, including the National Agency for Science and Engineering Infrastructure (NASENI), the Tertiary Education Trust Fund (TETFUND), and the National Information Technology Development Agency (NITDA).
In a statement issued on Monday, December 2, by the special adviser to the president on information and strategy, Bayo Onanuga, the government described the allegations as “deliberate misinformation” intended to mislead Nigerians and stir sectional tensions.
The presidency said contrary to speculations, the bills aimed to streamline Nigeria’s tax system by consolidating some taxes that currently overburden businesses, rather than scrapping or undermining any agency.
It noted that the reforms propose a phased replacement of earmarked taxes with a single tax to be distributed among the affected agencies until 2030, ensuring their operations continue uninterrupted.
“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.
“President Bola Tinubu’s administration argued that multiple taxes have hindered economic growth, driven investors away, and made Nigeria less competitive globally. The reforms, it stated, aim to correct decades of inefficiencies and align,” the statement read.
The ICIR reported that the bills, submitted by the President to the National Assembly on October 3, have sparked intense debate in the National Assembly, with many Nigerian lawmakers and governors, particularly from the North voicing fears that they could exacerbate the economic disparities between resource-rich and less-endowed states.
The four proposed laws—the Nigeria Tax Bill 2024, the Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill—aim to overhaul the country’s fiscal framework, simplify tax collection, and reduce disputes.
While proponents argue that the reforms will strengthen Nigeria’s fiscal institutions and align with the administration’s broader development goals, critics, including some northern governors and lawmakers, caution against provisions they believe could unfairly favour resource-rich states over others.
However, the presidency argued that multiple taxes have hindered economic growth, driven investors away, and made Nigeria less competitive globally, stating that the bills aim to correct decades of inefficiencies and align Nigeria with international best practices.
Onanuga urged public commentators and political actors to engage constructively with the bills rather than incite divisions or spread unfounded claims.
He also encouraged Nigerians to participate in the upcoming public hearings by the National Assembly to share their views on the proposed reforms.
Mustapha Usman is an investigative journalist with the International Centre for Investigative Reporting. You can easily reach him via: musman@icirnigeria.com. He tweets @UsmanMustapha_M