Tax Reform Bills: Presidency Reaffirms Support for NITDA, NASENI, and TETFUND

The Presidency has firmly denied allegations that the government intends to abolish the National Information Technology Development Agency (NITDA), National Agency for Science and Engineering Infrastructure (NASENI), or the Tertiary Education Trust Fund (TETFUND) through the proposed tax reform bills currently under review by the National Assembly.

In a statement issued on Monday, Mr. Bayo Onanuga, Special Adviser to the President on Information and Strategy, clarified these misconceptions, emphasizing the administration’s commitment to national development.

Tax Reform to Boost Economic Growth

President Bola Tinubu’s push for Tax and Fiscal Policy Reforms aims to simplify Nigeria’s tax system and create a business-friendly environment. Mr. Onanuga reiterated that the bills seek to streamline taxation without jeopardizing the existence of key government agencies.

“Contrary to the rumors, NASENI, TETFUND, and NITDA will not cease to exist by 2029. These agencies remain vital to national progress and will continue to receive funding through budgetary allocations and other sources,” he stated.

The reforms also aim to address Nigeria’s longstanding challenges with over-taxation, which have stifled business growth and made the country less competitive for investments. The current tax structure, with multiple levies funding various agencies, has led some companies to relocate operations abroad—a trend the government seeks to reverse.

Consolidating Earmarked Taxes

The proposed reforms, particularly Section 59(3) of the Nigeria Tax Bill, suggest consolidating various earmarked taxes into a single levy. This tax will be shared among key agencies, such as NASENI, TETFUND, and NITDA, through a phased implementation process until 2030.

“The consolidation provides ample time for affected agencies to explore alternative funding sources while continuing to receive budgetary allocations. Transitioning from multiple earmarked taxes to a unified model aligns with global best practices,” Onanuga explained.

He further emphasized that changing an agency’s funding source does not equate to scrapping it, highlighting that leading nations in education, science, and technology do not rely on similar taxes to sustain such agencies.

Addressing Regional Concerns

The proposed reforms have sparked controversy, with critics expressing concerns about their potential impact on specific regions. For instance, the Northern Governors Forum and the National Economic Council (NEC) have called for the withdrawal of the bills to allow for wider consultations.

Despite these reservations, President Tinubu insists the legislative process is robust enough to accommodate inputs during public hearings, urging stakeholders to engage constructively.