Tax Reform Bill: No Plans to Close Key Agencies, Presidency Assures

The Presidency has dismissed widespread rumors regarding the proposed tax reform bills currently before the National Assembly.

Nigerians were assured that no aspect of the legislation seeks to abolish critical government agencies like the Tertiary Education Trust Fund (TETFUND), the National Agency for Science and Engineering Infrastructure (NASENI), or the National Information Technology Development Agency (NITDA).

In a statement issued on Monday, Bayo Onanuga, the Special Adviser to President Bola Tinubu on Information and Strategy, emphasized that claims of dismantling these agencies were baseless and misleading.

He clarified that the ongoing tax reform initiative is designed to streamline Nigeria’s tax system, create a more favorable environment for businesses, and improve citizens’ living standards.

“The tax bills under consideration are part of President Tinubu’s broader Tax and Fiscal Policy Reforms agenda, which aims to address long-standing complaints from businesses regarding complex and burdensome taxes.

The current system has made Nigeria less competitive and has driven some companies to relocate to other countries,” Onanuga said.

A key component of the proposed reforms is the consolidation of certain earmarked taxes levied on companies into a single unified tax. Under Section 59(3) of the Nigeria Tax Bill, the revenues from this unified tax will continue to support agencies such as TETFUND, NASENI, and NITDA, albeit with a gradual reduction in funding by 2030.

This, according to the Presidency, will give the affected agencies ample time to explore alternative funding sources while maintaining budgetary allocations.

While refuting claims that the reforms would lead to the closure of vital agencies, Onanuga pointed to global best practices in education, science, and technology funding.

He explained that countries leading in these fields often rely on broader tax revenues, rather than earmarked taxes, to fund essential institutions.

“The aim is to reduce the financial burden on businesses, without compromising the operational effectiveness of these agencies,” he stated.

In a direct appeal to the public, President Tinubu invited Nigerians to participate in the public hearings organized by the National Assembly on the tax reform bills.

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He expressed hope that the sessions would provide a platform for stakeholders, including governors, civil society groups, and professional associations, to voice their concerns and contribute to shaping the future of Nigeria’s tax policies.

“These reforms are crucial for sustainable economic growth and development,” Tinubu said. “We remain committed to fostering an inclusive and transparent policy-making process.”

The Presidency also called for responsible and informed discourse on the tax bills, urging political leaders and commentators to avoid spreading misinformation that could create unnecessary divisions in the country.