Presidency Refutes Claims of Favoritism in Tax Reform Bills

The Presidency has dismissed allegations that the proposed tax reform bills before the National Assembly are designed to favor Lagos and Rivers States. According to Bayo Onanuga, Special Adviser to the President on Information and Strategy, the reforms aim to simplify Nigeria’s complex tax system and enhance the overall quality of life for Nigerians.

Clarifying Misconceptions

In a statement, Onanuga refuted concerns that the reforms would harm the economy or result in the dissolution of key 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) by 2029. He emphasized that the reforms focus on reducing the tax burden on businesses by consolidating various levies into a single tax, while ensuring that funding for these agencies continues through budgetary allocations and alternative sources.

A Response to Long-standing Issues

The proposed reforms are the government’s response to years of complaints from private sector stakeholders regarding Nigeria’s excessive and overlapping tax structure, which has hindered business growth and discouraged investment. The Presidency argued that the current tax regime has made Nigeria less competitive, forcing some companies to relocate to more business-friendly countries.

Phased Implementation and Assurance of Continuity

The government also highlighted that Section 59(3) of the Nigeria Tax Bill proposes a gradual implementation of the consolidated tax system, allowing affected agencies ample time to diversify their revenue streams. The Presidency stressed that altering the funding mechanism for these agencies does not imply their abolition.

Economic Competitiveness and Growth

Expressing confidence in the reforms, the administration stated that streamlining the tax system would support businesses, foster economic competitiveness, and ultimately improve the living standards of all Nigerians. The Presidency reaffirmed its commitment to creating a more business-friendly environment while maintaining essential services and agencies crucial to the nation’s development.