𝗡𝗼 𝗔𝗴𝗲𝗻𝗰𝘆 𝗦𝗰𝗿𝗮𝗽𝗽𝗶𝗻𝗴 𝗶𝗻 𝗧𝗮𝘅 𝗥𝗲𝗳𝗼𝗿𝗺𝘀, 𝗣𝗿𝗲𝘀𝗶𝗱𝗲𝗻𝗰𝘆 𝗖𝗹𝗮𝗿𝗶𝗳𝗶𝗲𝘀 𝗠𝗶𝘀𝗰𝗼𝗻𝗰𝗲𝗽𝘁𝗶𝗼𝗻𝘀

Nigerian Presidency clears air on tax reform plans, assuring that critical agencies will continue their operations unaffected.

The Presidency has responded to concerns regarding the proposed Tax Reform Bills, clarifying that there is no intention to eliminate key 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 December 2, 2024, Bayo Onanuga, Special Adviser to President Bola Tinubu, indicated that the reforms are intended to simplify Nigeria’s tax structure, alleviate the financial burden on businesses, and encourage investment. 

He highlighted that the proposed changes would merge various taxes into a single levy, thereby enhancing the efficiency of tax administration. 

Onanuga assured the public that the agencies in question would continue to receive necessary funding through budget allocations, allowing them to fulfill their mandates. 

He further explained that the reforms aim to update outdated tax regulations, fostering a more conducive environment for business growth and national development. 

He emphasized that the objective is to stimulate economic progress without disadvantaging any region or critical sector. 

Additionally, he stated that the tax reform bills would not disproportionately enrich Lagos or Rivers while impoverishing other areas, nor would they jeopardize the economy of any region. 

Instead, the reforms are designed to improve the living standards of all Nigerians, particularly those in vulnerable situations. 

Onanuga refuted claims that NASENI, TETFUND, and NITDA would cease to operate after 2029, affirming that these agencies are sustained through budgetary allocations derived from company income tax and other taxes imposed on businesses.

President Bola Tinubu initiated the Tax and Fiscal Policy Reforms to enhance tax administration in Nigeria and create a more favorable business environment. 

For many years, businesses and investors have expressed concerns about the excessive burden of numerous taxes and levies, which are often designated to support various government agencies and initiatives. 

This complex tax landscape hampers Nigeria's competitiveness for investment and hinders the growth and sustainability of many enterprises, leading some to consider relocating abroad. 

To address this issue, the proposal outlined in section 59(3) of the Nigeria Tax Bill aims to consolidate certain designated taxes into a single tax, which will be distributed among key agencies in a phased approach until 2030. 

This timeline allows the affected agencies to seek alternative funding sources beyond budgetary allocations, adhering to constitutional guidelines and international best practices. 

It is inaccurate to assert that altering an agency's funding mechanism equates to its elimination, as leading nations in education, science, engineering, and information technology do not rely on similar earmarked taxes. 

The Presidency encourages public participation in National Assembly hearings and advocates for informed, fact-based discussions to prevent unnecessary divisions and misunderstandings.