Presidency: Tax reform bills won’t abolish NITDA, NASENI or harm north
The Presidency has refuted claims that the ongoing Tax Reform Bills, currently before the National Assembly, propose the dissolution of key government agencies such as the Tertiary Education Trust Fund (TETFUND), the National Agency for Science and Engineering Infrastructure (NASENI), and the National Information Technology Development Agency (NITDA), or that they would impoverish the northern region.
Bayo Onanuga, the spokesperson for the State House, issued a statement on Monday, dismissing what he described as misleading and false narratives surrounding the bills.
The proposed tax reforms have sparked heated debate in recent weeks, with critics accusing the government of targeting specific regions, particularly the north, and threatening the funding of essential government programs.
The bills under discussion, which have passed their second reading in the Senate, include the Joint Revenue Board of Nigeria (Establishment) Bill, 2024 – SB.583; The Nigeria Revenue Service (Establishment) Bill, 2024 – SB.584; The Nigeria Tax Administration Bill, 2024 – SB.585; and The Nigeria Tax Bill, 2024 – SB.586.
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Some northern leaders have expressed opposition to the bills, which propose exempting individuals earning below N1 million annually from paying taxes. Governor Babagana Zulum of Borno State, for example, argued that the reforms would primarily benefit Lagos and Rivers states, leaving the north at a disadvantage.
Zulum stated, “Only Lagos will benefit from this scheme. But what we are telling them is to give us time. Why the rush? Let us pause and have a deeper consultation because we are in a democracy,” during an appearance on Channels Television’s Politics Today.
He further warned that if the bills are passed, they could exacerbate the economic divide between Lagos and other states.
In response, the Presidency has labeled these allegations as false, emphasizing that the tax reform bills will not make Lagos or Rivers wealthier at the expense of other regions. The Presidency asserted that the bills are intended to improve the living standards of Nigerians, especially those who are struggling to make ends meet.
The Presidency also clarified that the bills do not propose the cessation of NASENI, TETFUND, or NITDA in 2029, as some have claimed. These agencies, it explained, are funded through budgetary allocations sourced from company income taxes and other taxes paid by businesses, which are already burdened by the special taxes outlined in the proposed reforms.
The statement further condemned the spread of misinformation, noting that many of the public reactions to the bills are based on falsehoods and a lack of understanding. It accused some commentators of attempting to incite division among the people and stir regional tensions.
The Presidency concluded by asserting that the tax reforms will not harm any section of the country’s economy but instead aim to improve the quality of life for all Nigerians, particularly those in need.
Proofreading by Uchechi Ojo, Sub-editor at NeptunePrime.
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