The Presidency has rejected allegations that the proposed tax reform bills before the National Assembly will harm northern Nigeria or unfairly benefit Lagos and Rivers states.
Presidential spokesperson Bayo Onanuga assured Nigerians in a statement on Monday that the reforms are designed to benefit everyone, especially the disadvantaged, while simplifying tax systems to encourage business growth.
Concerns over the reforms were raised by Borno State governor Babagana Zulum, who argued that the proposed Value Added Tax (VAT) sharing model could favour wealthier states like Lagos and Rivers. Onanuga dismissed these fears, describing them as baseless and rooted in misinformation.
“The tax reform bills will not make Lagos or Rivers more affluent and other parts of the country, as recklessly canvassed, poorer. The bills will not destroy the economy of any section of the country.
“Instead, they aim to enhance the quality of life for Nigerians, especially the disadvantaged, who are trying to make a living,” he said, urging Nigerians to reject divisive rhetoric surrounding the reforms.
Onanuga also clarified that the reforms would not abolish important agencies such as the Tertiary Education Trust Fund (TETFUND), the National Agency for Science and Engineering Infrastructure (NASENI), or the National Information Technology Development Agency (NITDA).
“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.
“Government agencies, such as NASENI, TETFUND, and NITDA, are funded through budgetary provisions with company income tax and other taxes paid by the same businesses that are being overburdened with the special taxes,” the statement said.
These institutions, he stated, will continue to operate and receive funding through the national budget.
He emphasised that President Bola Tinubu’s tax reforms aim to make tax collection more straightforward, ease the burden on businesses, and promote economic development.
“One reason President Bola Tinubu embarked on the Tax and Fiscal Policy Reforms is the need to streamline tax administration in Nigeria and make the operating environment conducive for businesses,” he said.
“For decades, businesses, investors, and private sector players in Nigeria have complained of being overburdened by a myriad of taxes and levies, including those earmarked to fund various government agencies and initiatives.
“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 can not continue on this path or wait for 20 years if this country is to deliver the prosperity we need for our people,” the statement added.
