Presidency Defends Tax Reform Bills, Urges Swift Legislative Action Amid Public Debate
The Presidency has responded to criticisms over the perceived haste in advancing the Tax Reform Bills, emphasizing that the legislation is the product of over 14 months of rigorous work by more than 80 experts from across Nigeria.
Senior Special Assistant to the President on Media and Publicity, Temitope Ajayi, clarified the extensive groundwork behind the reforms via a statement on Monday. He warned against delays, citing the two-decade legislative stagnation of the Petroleum Industry Bill (PIB) as a cautionary tale, which resulted in significant economic losses.
Reform Timeline and Justification
Ajayi underscored the urgency of the bills, which aim to address Nigeria’s fiscal challenges by streamlining tax administration and creating a conducive environment for businesses. He dismissed claims that the reforms were rushed, describing such allegations as “disingenuous.”
“The Tax Reform Bills are the product of 14 months of extensive work by over 80 professionals drawn from every part of the country. It would be backward thinking to suggest a delay, as Nigeria cannot afford the economic setbacks that plagued the PIB for 20 years,” Ajayi stated.
Concerns Over Legislative Speed
Despite the Presidency’s defense, Borno State Governor Babagana Zulum expressed reservations about the expedited legislative process. In an interview with BBC Hausa, Zulum advocated for a more deliberate approach, warning that a rushed bill could have long-term implications, especially for northern states.
“Why the rush? The Petroleum Industry Bill took almost 20 years before it was finally passed. But this tax reform bill is receiving legislative attention within a week. It should be treated carefully to ensure it benefits future generations,” Zulum cautioned.
Addressing Misinformation
Ajayi refuted allegations that the reforms would disadvantage certain regions or lead to the dissolution of key government agencies such as NASENI, TETFUND, and NITDA. He explained that the bills propose consolidating multiple taxes into a single levy to reduce the tax burden on businesses while ensuring these agencies remain funded through budgetary allocations.
“It is a misrepresentation of facts to suggest that changing an agency’s funding source amounts to scrapping it. The reform aims to phase out obsolete practices and streamline tax administration for economic growth,” he clarified.
Call for Constructive Engagement
Ajayi appealed for a fact-based discourse on the reforms, urging stakeholders to participate in upcoming public hearings organized by the National Assembly. He stressed the importance of leaders providing informed guidance to avoid polarizing the country.
“What is never in doubt is the imperative of changing the existing tax laws and administration that have become obsolete. Leaders should ensure their public utterances on this matter are measured to avoid heating the polity,” Ajayi concluded.
The Presidency assured Nigerians that the reforms aim to address fiscal challenges, attract investments, and set the stage for sustained economic growth while ensuring equity and fairness in implementation.
