The presidency has dismissed allegations that the Tax Reform Bills sent to the National Assembly by President Bola Tinubu are designed to impoverish the northern region.

The bills, introduced weeks ago, have sparked controversy, with some critics alleging they unfairly target the North.

In response, presidential spokesman Bayo Onanuga described such claims as unfounded and divisive.

“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”, Onanuga stated in a press release on Monday.

Onanuga also addressed rumors that the bills propose the termination of agencies such as NASENI, TETFUND, and NITDA by 2029.

“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,” he explained.

Highlighting the rationale behind the reforms, Onanuga noted that businesses and investors have long struggled with excessive taxation, which has stifled growth and driven some companies to relocate abroad.

“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.

“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 cannot continue on this path or wait for 20 years if this country is to deliver the prosperity we need for our people”, he said.

Onanuga clarified that the proposal outlined in section 59(3) of the Nigeria Tax Bill seeks to consolidate multiple taxes into a single levy, which will be distributed to key agencies over a phased period ending in 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.

“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 presidency urged Nigerians to view the Tax Reform Bills as a step toward economic efficiency and equitable development rather than a regional threat.

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