The Presidency has clarified that the proposed Tax Reform Bills do not seek to dismantle prominent agencies such as TETFUND, NASENI, or NITDA, contrary to widespread speculation.
Bayo Onanuga, Special Adviser to President Bola Tinubu, emphasized in a statement on December 2, 2024, that the reforms are designed to streamline Nigeria’s tax system, consolidating multiple levies into a single tax. This aims to reduce the burden on businesses while ensuring agencies remain funded through budgetary allocations.
“The tax reform bills will modernize Nigeria’s tax laws, enhance the business environment, and foster national growth. It is not an agenda to make any region poorer or destroy existing agencies,” Onanuga said.
The proposed reforms, outlined in Section 59(3) of the Nigeria Tax Bill, introduce a phased funding approach for key agencies until 2030, allowing them time to explore alternative funding sources.
Key Points:
- The reforms aim to simplify the tax system, reducing overburden on businesses.
- Agencies like NASENI, TETFUND, and NITDA will continue to operate and receive funding.
- Consolidated taxes will replace earmarked levies to create a more competitive business environment.
- The changes align with international best practices and aim to curb economic inefficiencies hindering investment.
The Presidency assured Nigerians that the reforms are part of a broader strategy to boost economic growth and improve the quality of life for all citizens.
