The Presidency has refuted claims that the government intends to dissolve the National Information Technology Development Agency (NITDA), the National Agency for Science and Engineering Infrastructure (NASENI), and the Tertiary Education Trust Fund (TETFUND) through the contentious tax reform bills currently under consideration in the National Assembly.
In a statement issued on Monday, the Special Adviser to the President on Information and Strategy, Mr. Bayo Onanuga, addressed the rumors, clarifying that the proposed reforms are not aimed at undermining any region or institutions but are designed to improve the quality of life for disadvantaged Nigerians.
Why Tinubu Initiated Tax Reform
Onanuga explained that President Bola Tinubu’s push for tax and fiscal policy reforms stems from the need to simplify Nigeria’s tax system and create a business-friendly environment.
“Contrary to misinformation, there is no indication in the bills that NASENI, TETFUND, and NITDA will cease operations in 2029. These agencies are funded through budgetary allocations sourced from company income tax and other levies imposed on businesses already grappling with excessive taxation,” he said.
He highlighted that, for years, businesses and private-sector stakeholders have raised concerns about Nigeria’s complex tax regime, which hampers competitiveness and stifles growth. Onanuga noted that many companies have opted to relocate to more favorable environments, further undermining Nigeria’s economic prospects.
Streamlining Taxes and Funding
The proposed reforms, particularly Section 59(3) of the Nigeria Tax Bill, aim to consolidate certain earmarked taxes into a single levy. This unified tax would be distributed among the relevant agencies in a phased approach, allowing them to explore alternative funding sources by 2030.
“The transition period provides sufficient time for these agencies to adapt to new funding mechanisms, complementing their budgetary allocations as stipulated by the constitution. This does not imply the abolition of any agency,” Onanuga clarified.
He further argued that globally, leading nations in education, science, engineering, and information technology do not rely on specialized taxes to fund government agencies. Instead, major taxes such as income and consumption taxes are allocated to priority areas as needed.
Addressing Concerns
The tax reform bills have sparked significant debate, with some groups expressing concerns about the potential regional impact of the proposed changes.
The Northern Governors Forum has voiced opposition, urging representatives from the region to reject provisions that may disadvantage Northerners. Similarly, the National Economic Council (NEC), comprising all 36 state governors and chaired by the Vice President, has called for the withdrawal of the bills to allow for further consultation.
Despite these objections, President Tinubu has maintained that the legislative process allows for public input during hearings, and adjustments can be made as necessary.
The reforms, according to the Presidency, are aimed at addressing inefficiencies in the current tax system while promoting economic growth and ensuring that agencies remain functional without overburdening businesses.
