- Says it’s a product of 14-month work
- Why we postponed debate on bills – Reps spokesman
li>Shinkafi knocks governors opposing tax reforms, urges economic innovation
The passage of the four tax reform bills before the National Assembly will not end the existence of government agencies like TETFUND and NITDA but will change how they are funded, a presidential aide said on Monday.
President Bola Tinubu’s spokesperson, Bayo Onanuga, also said the bills would not disproportionately favour any part of the country, contrary to claims of critics and skeptics.
“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,” Onanuga said in a statement on Monday
NASENI is a federal agency established to promote science and technology across the country, while TETFUND is primarily to support the funding of public tertiary institutions. NITDA promotes information technology across Nigeria. They are all funded through taxes imposed on businesses operating in Nigeria.
Onanuga explained that the tax reform bills seek to consolidate the taxes into one and share them as appropriate.
“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 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 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,” Onanuga said.
The four tax reform bills have generated intense debate across Nigeria.
The bills are the Joint Revenue Board of Nigeria (Establishment) Bill, 2024 -SB.583; the Nigeria Revenue Service (Establishment) Bill, 2024- SB.584; the Nigeria Tax Administration Bill, 2024-SB.585; and the Nigeria Tax Bill, 2024 – SB.586.
Some Nigerians have criticised the bills, claiming they favour some parts of the country over others.
However, proponents have said that many of those criticising the bills have not read their provisions and are only amplifying falsehoods.
The bills have passed the second reading stage at the Senate and have been handed over to a committee that will conduct public hearings on them. They are yet to be debated in the House of Representatives.
Why we postponed debate on Tax reform bills, by Reps spokesman
Meanwhile, the spokesman of the House of Representatives, Akintunde Rotimi said on Monday that the House decided to postpone the scheduled debate on the tax reform bills to allow for more consultations by members.
The House at plenary on Thursday, November 28, had scheduled a debate on the tax bills presented to the National Assembly which has generated some level of controversy around the country.
Northern leaders, including traditional rulers, governors and some lawmakers have argued that the bills will undermine the development and growth of the north if passed, while the 36 governors asked for the withdrawal.
But the Senate has passed the bills for second reading, while the House has said that it will debate the bills on Tuesday, December 3 after giving members opportunity for more consultation.
However, in a last minute memo to members, Clerk to the House, Yahaya Danzaria announced that the special session to discuss the bills has been postponed to a later date ‘”due to the need for further and broader consultations with all relevant stakeholders.”
It was gathered that some members of the House who were scheduled to travel outside Abuja for oversight functions had to cancel the trip to be part of the scheduled session as members mobilised to take positions on the bills.
Responding to an inquiry on Monday evening, Rotimi confirmed the postponement of the session, saying it was postponed “to allow for further consultations before the debate comes up.”
Shinkafi slams governors opposing tax reforms, urges economic innovation
In the same vein, the Executive Director of the Patriots for the Advancement of Peace and Social Development, Sani Abdullahi Shinkafi, has criticised the opposition of some state governors to the proposed tax reforms, describing it as indicative of laziness and a lack of innovation in governance.
Shinkafi, a former National Secretary of the All Progressives Grand Alliance, disclosed this during an interview on a live television programme on Monday.
He didn’t hold back in his criticism of governors, particularly from the northern region, who have openly resisted the reforms.
“Because of how the money will be shared based on your performance and contribution, that is why they are complaining,” he said, responding to the opposition from the 19 northern state governors.
“Most of these states are lazy; most of them are not ready to develop their states to generate revenue; that is why they are complaining,” he said.
Shinkafi dismissed the opposition as not only baseless but also politically motivated.
He specifically addressed the backlash from the Northern Youth Assembly, which accused the Deputy Senate President of bias in facilitating the passage of the bills.
“The attack by the Northern Youth Assembly is uncalled for. All the attacks, blackmail, and mischief-making are politically motivated against the Deputy Senate President,” Shinkafi remarked.
He defended the Senate leadership, noting that it was simply fulfilling its constitutional duty.
Shinkafi argued that much of the criticism stems from a lack of understanding, saying “If they had looked deeply into it, the governors would not be crying foul.”
He accused the regional leaders of perpetuating economic stagnation and underdevelopment.
“These governors are responsible for the economic failure, insecurity, chronic unemployment, acute poverty, and educational backwardness in the northern region,” he said.
Contrary to the narrative that the tax reforms are anti-north, Shinkafi highlighted several provisions designed to boost economic growth and support vulnerable sectors.
“Small businesses with a turnover not exceeding ₦50 million are exempted from paying annual taxes,” he explained.
Additionally, essential goods like pharmaceutical products, food items, educational materials, agricultural equipment, and export goods are exempt from VAT.
Another significant provision is the reduction of income tax for small businesses from 30 per cent to 25 per cent, a move Shinkafi believes will encourage growth and investment in critical sectors.
The Zamfara-born politician also addressed allegations that the reforms favour southern states, particularly Lagos, or serve the personal interests of President Bola Tinubu through ties to Alpha Beta Consulting.
He refuted the claims as misinformation aimed at discrediting the presidency.
“People are being misinformed about the new tax bill against the presidency. The most important thing is for you to be upright in your decisions and very transparent and accountable,” he said.
To quell the growing controversy, Shinkafi urged the public to engage in scrutinising the bills through open dialogue and public hearings.
“The issue of attribution and derivation is clear. With public hearings, all these issues would have been avoidable,” he noted, emphasising that a transparent process could dispel misconceptions and build public trust.
As the debate over the tax reforms continues, Shinkafi said, “Nigeria cannot afford to remain stagnant. It is time for state governments to embrace innovation, take responsibility for their economic development, and support reforms that promise to transform the nation’s tax landscape for the better.”
