Presidency Clarifies Tax Reform Bills, Confirms TETFUND, NASENI, NITDA Will Remain Intact

The presidency clarified Monday that the proposed tax reform bills do not suggest eliminating key government agencies like the Tertiary Education Trust Fund (TETFUND), the National Agency for Science and Engineering Infrastructure (NASENI), or the National Information Technology Development Agency (NITDA).

Presidential Spokesman Bayo Onanuga issued a statement on X, explaining that the bills aimed to simplify Nigeria's tax system and encourage economic growth.

The bills had proposed to gradually end taxes that currently support agencies like NASENI, TETFUND and NITDA by 2030. However, these agencies will still receive funding through the national budget, which was supported by company income tax and other business levies, to maintain their operations and effectiveness.

"The tax reform bills will not make Lagos or Rivers more affluent while making other parts of the country poorer, as some have recklessly suggested," Onanuga said. "The bills will not destroy the economy of any region."

"Instead, they aim to improve the quality of life for Nigerians, especially the disadvantaged, who are striving to make a living. Contrary to the lies being spread, the bills do not propose that NASENI, TETFUND, and NITDA will cease to exist in 2029 following the bills' passage."

He criticized false information spread by some people, saying the tax reform bills have been misrepresented as measures meant to harm certain regions, especially the north.

Onanuga clarified that the purpose of the bills was to reduce the tax burden on businesses, creating a better environment for investment and economic growth across the country.

He added that Nigeria's current tax system, with many different levies to fund various agencies, has made it harder for the country to attract investment, pointing out that many businesses have had to reduce staff or move somewhere else because of the high costs and complexity of following the rules.

Onanuga stressed that changing the way these agencies were funded doesn't mean shutting them down, while mentioning that no major country in education, science, or technology relied on separate taxes to fund specific agencies.

Last week, Taiwo Oyedele, the chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, said the tax bills proposed by President Bola Tinubu were designed to reduce the tax burden on 90% of Nigerian workers.