The Presidency has debunked claims suggesting that the proposed tax reform Bills before the 10th National Assembly that will impoverish the northern region of the country.
In an issued statement yesterday, Special Adviser to the President on Information and Strategy, Bayo Onanuga, clarified that the Bills are designed to streamline Nigeria’s tax administration, enhance business competitiveness, and foster economic growth—not to impoverish any region or compromise vital institutions.
According to the presidential spokesperson, the Bills will not make Lagos or Rivers States more affluent than other parts of the country. The Presidency expressed concern over the misinformation being circulated about the Bills, accusing some political actors and commentators of distorting facts and inciting divisions.
According to the statement, “Contrary to claims that the tax reforms would disproportionately benefit states like Lagos and Rivers at the expense of others, the statement emphasised that the Bills aim to improve the quality of life for all Nigerians, particularly the disadvantaged.
“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 proposed reforms, outlined in Section 59(3) of the Nigeria Tax Bill, seek to consolidate multiple earmarked taxes imposed on businesses into a single tax. The collected revenue would still be allocated to key agencies like NASENI, TETFUND, and NITDA during a phased transition until 2030”, it stated.
The Government argued that Nigeria’s current practice of funding agencies through specific taxes is burdensome for businesses, discourages investment, and undermines economic growth. By consolidating taxes, the reforms aim to create a more business-friendly environment while maintaining the agencies’ funding through budgetary provisions.
The Presidency pointed out that globally, countries leading in education, science, and technology do not rely on earmarked taxes to fund such agencies. Instead, resources are channeled through broader, more efficient tax systems. “It is a misrepresentation of facts to conclude that changing an agency’s funding source amounts to scrapping it”, the statement noted, adding that affected agencies would have ample time to explore alternative funding mechanisms.
President Bola Tinubu urged stakeholders – including governors, traditional rulers, civil society groups, and professional associations – to participate in the upcoming public hearings on the bills. These sessions, to be organised by the National Assembly, provide a platform for Nigerians to voice their perspectives and contribute to shaping the reforms.
The Presidency reiterated the urgent need to modernise Nigeria’s tax laws to foster economic growth and development. “The imperative of changing the existing tax laws and administration that have become obsolete and unhelpful is never in doubt”, the statement concluded.
The Tax Reform Bills are part of President Tinubu’s broader economic agenda, aimed at creating a more sustainable and prosperous future for Nigeria.
