The Presidency has dismissed claims that the proposed tax reform bills before the National Assembly aim to abolish key national agencies, including the Tertiary Education Trust Fund (TETFund), the National Agency for Science and Engineering Infrastructure (NASENI), and the National Information Technology Development Agency (NITDA), describing the assertions by Borno State governor, Babagana Zulum, as lies.
In a statement issued on Monday, Special Adviser to the President on Information and Strategy, Bayo Onanuga, described such assertions as baseless and a deliberate attempt to mislead the public.
He clarified that the reforms aimed to streamline tax administration and create a more business-friendly environment, not to dismantle critical institutions.
“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,” the statement read.
The Presidency emphasised that the proposed reforms, including Section 59(3) of the Nigeria Tax Bill, seek to consolidate existing taxes into a single tax framework.
The new system would ensure that critical agencies continue to receive funding but through a more sustainable and efficient approach.
“Government agencies such as NASENI, TETFund, and NITDA are funded through budgetary provisions with company income tax and other taxes paid by businesses that are currently overburdened by special taxes.
“The new approach will replace these taxes with a single levy to be phased in gradually until 2030,” Onanuga stated.
He also stressed that the timeframe allows the affected agencies to identify additional funding sources, aligning with constitutional provisions and international best practices.
President Bola Tinubu administration launched the Tax and Fiscal Policy Reforms to address long-standing complaints from businesses about Nigeria’s overly complex tax system.
The multiplicity of levies has made the country uncompetitive for investment and has forced some companies to relocate.
“The multiple taxes complicate the economic environment, making Nigeria uncompetitive for investment and preventing many businesses from growing or continuing their operations.
“We cannot continue on this path or wait for 20 years if this country is to deliver the prosperity we need for our people,” the statement said
The Presidency further debunked claims that the reforms would economically harm specific regions, including the North, or disproportionately benefit states like Lagos and Rivers.
“The tax reform bills will not make Lagos or Rivers more affluent and other parts of the country, as recklessly canvassed, poorer. The bills aim to enhance the quality of life for Nigerians, especially the disadvantaged,” Onanuga added.
The Presidency criticised some commentators for allegedly inciting public sentiment against lawmakers and polarizing sections of the country.
It urged all stakeholders, including civil society groups, traditional rulers, governors, and trade associations, to engage constructively by participating in the upcoming public hearings organized by the National Assembly.
“Leaders should be more measured in their public utterances to avoid heating the polity and polarizing the country unduly,” Onanuga advised.
He reaffirmed the Tinubu administration’s commitment to reforming an outdated tax system that has hindered economic growth and development.
“It is a misrepresentation of facts to conclude that changing an agency’s funding source amounts to scrapping it. .
“None of the countries leading globally in education, science, engineering, or information technology have similar earmarked taxes,” the statement said.
President Tinubu called on Nigerians to remain informed and avoid being swayed by misinformation. “What is never in doubt is the imperative of changing the existing tax laws and administration that have become obsolete and unhelpful in achieving the growth and development we desire for our country,” the Presidency concluded.
LEADERSHIP earlier reported Governor Zulum as saying that TETFund, NASENI and NITDA will cease to exist by 2029, according to a provision of the Tax Reform Bills.
Zulum made the disclosure on Channels TV’s programme, ‘Sunday Politics’, which was monitored by our Correspondent on Sunday night.
“Another provision of the Tax Bills is that by 2029 TETFund will be scrapped because companies will cease to support TETFund according to the law…NASENI will be scrapped in 2029…NITDA will be scrapped…These are some of our concerns,” the Borno State governor claimed.
Do you want to share a story with us? Do you want to advertise with us? Do you need publicity for a product, service, or event? Contact us on WhatsApp +2348183319097 Email: platformtimes@gmail.com
We are committed to impactful investigative journalism for human interest and social justice. Your donation will help us tell more stories. Kindly donate any amount HERE
