The Nigeria Governors’ Forum supports Tinubu's tax reforms, proposing a revised VAT sharing formula of 50% equality, 30% derivation, and 20% population. They urge exemptions for essentials, maintaining current VAT rates, and reforming tax laws to boost fiscal stability. Governors stress inclusive legislative processes to ensure equitable resource distribution.
The Nigeria Governors’ Forum (NGF), representing the 36 state governors, has voiced its support for President Bola Tinubu’s proposed tax reforms, emphasizing fair resource distribution and economic stability. During a meeting in Abuja with the Presidential Fiscal Policy and Tax Reforms Committee chaired by Taiwo Oyedele, they provided recommendations to refine the proposals.
In a communique issued by NGF Chairman and Kwara State Governor AbdulRahman AbdulRazaq, the governors endorsed a new Value Added Tax (VAT) sharing formula: 50% to be shared equally among states, 30% based on derivation, and 20% according to population. This approach aims to ensure a more balanced allocation of resources.
The governors also called for maintaining the existing VAT and Corporate Income Tax (CIT) rates to safeguard economic stability. They stressed the importance of exempting essential goods and agricultural produce from VAT to protect citizens’ welfare and encourage agricultural development.
Additionally, the NGF recommended sustained funding for key development institutions such as TETFUND, NASENI, and NITDA, opposing the introduction of terminal clauses for these agencies in the proposed bills.
The forum highlighted the need to modernize Nigeria’s tax laws to enhance fiscal stability and align with global best practices. They urged the National Assembly to facilitate public hearings, ensuring that citizens and stakeholders can provide input before the bills’ passage.
