*The Federal Government of Nigeria explains the Tax Reforms Bills in the National Assembly, in Abuja, ‘will not destroy the economy of any section of the country, and will not make the Lagos State or Rivers State more affluent, and other parts of the country poorer, as misconstrued in some quarters

Gbenga Kayode | 绿帽献妻

Contrary to certain misinformation currently making the rounds in the economy, the Federal Government of Nigeria has said the Tax Reforms Bills in the National Assembly (NASS), in Abuja, FCT, “will not destroy the economy of any section of the country.”

The Nigerian Government noted the tax bills also, would not make the Lagos State or Rivers State more affluent, and other parts of the country poorer, as recklessly being suggested in some quarters.

President Bola Ahmed Tinubu, GCFR

Mr. Bayo Onanuga, Special Adviser to the President on Information and Strategy, who noted this in a statement Monday,
December 2, 2024, averred instead, the country’s Tax Reforms Bills “aim to enhance the quality of life for Nigerians, especially the disadvantaged, who are trying to make a living.”

The statement further noted since the public debate around the transformative tax bills before the National Assembly began in the last few weeks, various political actors and commentators have tried to obfuscate the facts, deliberately misinforming and misleading the public.

According to the government, unfortunately, most reactions are not grounded in facts, reality, or sufficient knowledge of the bills.

Onanuga also stated: “While some commentators have attempted to incite the people against lawmakers, others have polarised one section of the country against another.”

The government restated the Tax Reforms Bills

aim to enhance the quality of life for Nigerians, especially the disadvantaged, who are trying to make a living in the economy.

Bills contain no provision on scrapping of 3 MDAs

The statement as well noted the Federal Government said contrary to the lies being peddled, the tax bills do not suggest that NASENI, TETFUND, and NITDA will cease to exist in 2029 after the passage of the bills.

The Presidential aide further explained the said government agencies – NASENI, TETFUND, and NITDA – are funded through budgetary provisions with Company Income Tax (PIT), and other taxes paid by the same businesses that are being overburdened with the special taxes.

Rationale for Tinubu鈥檚 Tax and Fiscal Policy Reforms

Onanuga asserted: “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 observed that 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 statement also noted the multiple taxes complicate the economic environment, making Nigeria uncompetitive for investment and preventing several businesses from growing or continuing their operations.

Some companies have had to make the rational decision to relocate to other countries, the government stated.

Does changing an agency’s funding source amount to scrapping it?

The Nigerian Government declared: “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 Nigerian Government said 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.

“It is a misrepresentation of facts to conclude that changing an agency’s funding source amounts to scrapping it.”

None of the countries leading globally in education, science, engineering, or information technology have similar earmarked taxes, the government noted.

On proper education and understanding of contents of Tax Reforms Bills

The Presidential aide further affirmed that the government imposes major taxes, be it income tax, consumption tax, or other taxes, to channel resources to its areas of priority at the time.

It stated: “Imposing a separate tax to fund an agency is an aberration that has yet to yield results despite the huge burden on businesses.

“The tax bill seeks to address this problem.

“Relevant stakeholders and public analysts owe it a duty to properly educate themselves about the bills’ contents and avoid misleading the public for any reason.”

The statement also noted: “We may be entitled to our opinions, but such views must be informed and based on facts, not emotions targeted at inflaming passions.

“In a period like this, when our people across the country look up to leaders for guidance and direction on matters of public importance, such as the Tax Reforms Bills, leaders should be more measured in their public utterances to avoid heating the polity and polarising the country unduly.”

Onanuga said: “President Tinubu welcomes the public interest these bills have generated.

“He encourages leaders across the country, including Governors, Traditional rulers, Civil Society Activists, Students, trade associations, professional associations, and the general public, to take advantage of the Public Hearings that the National Assembly will organise to present their views on how best to reform our taxes and fiscal regime.”

The statement added: “What is never in doubt is the imperative of changing the existing tax laws and administration that have become obsolete and unhelpful in achieving the growth and development we desire for our country.”

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