The Presidency has reiterated that the proposed Tax Reform Bills before the National Assembly are not aimed at impoverishing Northern Nigeria but at enhancing the quality of life for Nigerians, especially the disadvantaged, who are trying to make a living.
Responding to recent debates surrounding the tax reform bills proposed by President Bola Ahmed Tinubu’s administration, the Special Adviser to the President on Information and Strategy, Mr Bayo Onanuga, stated that uninformed views had generated misinformation and are presently misleading Nigerians regarding the benefits of the proposed tax reforms.
According to him,” 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.”
He criticised some commentators and public analysts who have muddled the facts, thereby misinforming and misleading the public.
“Since the public debate around the transformative tax bills before the National Assembly began in the last few weeks, various political actors and commentators have tried to obfuscate the facts, deliberately misinforming and misleading the public.
“Unfortunately, most reactions are not grounded in facts, reality, or sufficient knowledge of the bills. While some commentators have attempted to incite the people against lawmakers, others have polarized one section of the country against another.”
He highlighted one of the major reasons President Tinubu embarked on the Tax and Fiscal Policy Reforms: to streamline tax administration in Nigeria and make the operating environment conducive for businesses.
Mr Onanuga mentioned that for decades businesses, investors, and private sector players in Nigeria have complained of being overburdened by multiple taxes, a practice he said had complicated the Nigerian economic environment, making the nation uncompetitive for investment and preventing many businesses from growing or continuing their operations.
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 cannot continue on this path or wait for 20 years if this country is to deliver the prosperity we need for our people.
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 cannot continue on this path or wait for 20 years if this country is to deliver the prosperity we need for our people.
Dismissal of Claims
The Presidency further refuted widespread claims suggesting that the proposed tax reform bills before the National Assembly recommend the dissolution of key federal agencies.
A major insinuation is that the bills aim to scrap key government agencies such as the National Agency for Science and Engineering Infrastructure (NASENI), the Tertiary Education Trust Fund (TETFUND), and the National Information Technology Development Agency (NITDA).
Public analysts suggested that these agencies would lose their funding and cease to operate by 2029, a position the presidency has refuted.
It would also be recalled that some northern governors have expressed concerns, particularly about changes in the Value Added Tax (VAT) sharing formula, viewing it as detrimental to their region’s economic stability.
The government has countered this clarifying that the reforms aim to simplify tax administration, reduce the burden on businesses, and ensure equitable revenue distribution among states, with provisions for equalization transfers to maintain fairness.
The government further explained that the reforms would exempt many low-income earners from taxation and streamline the taxation process to support vulnerable businesses and individuals.
Mr Onanuga also emphasised that no provision in the bills seeks to abolish these institutions or disproportionately disadvantage any region of the country.
The Presidential aide criticised commentators for spreading unfiltered and uninformed claims while inflaming regional tensions.
The proposed reforms include consolidating multiple taxes currently imposed on businesses into a single tax, a move intended to simplify tax administration and reduce the financial burden on companies.
The statement highlighted that businesses in Nigeria have long struggled under the weight of numerous taxes, which have hampered growth, deterred investment, and, in some cases, forced companies to relocate to more favorable markets.
Under the new framework, affected agencies such as NASENI, TETFUND, and NITDA will continue to receive funding through budgetary allocations and a phased sharing of the consolidated tax revenue until 2030.
This approach, the Presidency argued, is consistent with global best practices, where government agencies are funded through general taxation rather than earmarked levies.
The statement urged public figures and stakeholders to base their comments on factual interpretations of the bills, rather than using unfounded claims to polarize the nation or mislead citizens.
It called on all Nigerians, including leaders in various sectors, to contribute constructively during upcoming public hearings organized by the National Assembly to discuss the tax proposals.
Mr Onanuga reiterated the urgency of reforming Nigeria’s outdated tax system to foster economic growth and development.
Dominica Nwabufo
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