Presidency: Tax Reforms Aim to Simplify, Boost Business Competitiveness

The presidency has issued a comprehensive statement addressing controversies surrounding the Tax Reform Bills currently under review by the National Assembly.

Bayo Onanuga, Special Adviser to President Bola Tinubu on Information and Strategy, refuted claims that the bills recommend scrapping key institutions such as the Tertiary Education Trust Fund, the National Agency for Science and Engineering Infrastructure, and the National Information Technology Development Agency. 

Onanuga emphasized that the proposals aim to streamline tax administration in Nigeria to reduce the tax burden on businesses, making the operating environment more competitive for investors. 

The statement clarified that the bills seek to consolidate multiple taxes, including those earmarked for specific agencies, into a single tax to enhance efficiency. 

“This consolidation will not result in the abolition of the agencies but rather provide a phased approach for them to transition to alternative funding models alongside budgetary allocations,” the statement noted.

The government argued that the existing system of special taxes for individual agencies has not yielded the desired outcomes and has contributed to a challenging business environment. 

By reforming tax structures, the administration hopes to stimulate economic growth, attract investment, and alleviate the financial pressures businesses currently face. 

Addressing fears of regional economic disparities, the statement dismissed allegations that the reforms favour wealthier states like Lagos and Rivers to the detriment of others. 

Instead, it underlined the nationwide benefits of the reforms, particularly for disadvantaged groups striving to sustain livelihoods. 

“President Tinubu welcomes public scrutiny and urges Nigerians, including governors, traditional rulers, civil society organizations, and other stakeholders, to participate in public hearings organized by the National Assembly,” the statement said.

Onanuga encouraged informed debate, urging leaders to avoid inflammatory rhetoric that could polarize the country. 

He said the reforms are portrayed as essential for modernizing Nigeria’s tax laws, which have become outdated and ineffective in fostering national development.

“The multiple taxes complicate the economic environment, making Nigeria uncompetitive for investment and preventing many businesses from growing or continuing their operations. 

“Some companies have had to make the rational decision to relocate to other countries. 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 proposal, as contained in section 59(3) of the Nigeria Tax Bill, only seeks to consolidate some of the earmarked taxes imposed on companies and replace them with a single tax to be shared with the key agencies as beneficiaries in a phased manner until 2030. 

“The time frame offers ample opportunity for the affected agencies to explore other funding sources in addition to budgetary allocations in line with the constitution and international best practices,” Onanuga stated.