Federal government has dismissed rumors suggesting plans to abolish three major government agencies — the National Information Technology Development Agency (NITDA), the National Agency for Science and Engineering Infrastructure (NASENI), and the Tertiary Education Trust Fund (TETFUND). These concerns emerged amidst ongoing discussions on the controversial tax reform bills currently under review by the National Assembly.
Special Adviser to the President on Information and Strategy, Mr. Bayo Onanuga, issued a statement on Monday addressing misconceptions surrounding the proposed reforms. He clarified that the government has no intention of scrapping these agencies and emphasized that the reforms are aimed at enhancing fiscal efficiency and improving the overall quality of life for Nigerians.
Addressing False Narratives
Onanuga firmly refuted allegations that the tax reform bills were designed to impoverish specific regions of the country or dismantle critical institutions. “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,” he stated.
He explained that the bills aim to streamline Nigeria’s complex tax structure, which has long been a source of concern for businesses and investors. For years, Nigeria’s private sector has decried the overwhelming number of taxes and levies imposed to fund government agencies, a situation that has hindered business growth and competitiveness.
Consolidation, Not Abolition
The proposed legislation seeks to consolidate certain taxes earmarked for agencies such as NASENI, TETFUND, and NITDA into a single tax. According to Onanuga, this measure will simplify tax administration and make Nigeria’s business environment more attractive to investors. The consolidated tax will still provide funding for these agencies, but over time, they are expected to explore alternative funding models alongside traditional budgetary allocations.
“It is a misrepresentation of facts to conclude that changing an agency’s funding source amounts to scrapping it,” Onanuga remarked. He added that many advanced nations leading in education, science, and technology do not rely on special taxes to fund specific agencies.
Balancing Reform and Regional Concerns
Despite the Presidency’s reassurances, the proposed tax reforms have sparked debate across the country. The Northern Governors Forum has voiced opposition to the bills, urging their regional representatives to resist any legislation that might undermine their interests. Similarly, the National Economic Council (NEC), which includes all 36 state governors, has called for the withdrawal of the bills to allow for broader consultations.
President Bola Tinubu, however, remains committed to the legislative process. He has encouraged stakeholders to present their concerns during public hearings, asserting that the reforms are necessary to create a more sustainable economic framework.
Moving Toward a Competitive Economy
The proposed tax reforms reflect the Tinubu administration’s broader strategy to revamp Nigeria’s fiscal policies. By consolidating taxes and reducing the burden on businesses, the government aims to foster economic growth, attract investment, and reduce the fiscal strain on its budget.
While controversies persist, the Presidency has reaffirmed its commitment to ensuring that the reforms will benefit all Nigerians without undermining the country’s critical institutions or regional interests.
