President Tinubu praises governors for endorsing tax reforms, including a new VAT formula, aimed at improving Nigeria's economy. However, Senator Ali Ndume opposes the 30% VAT share for oil-producing states, calling for a reduction. Public consultations on the tax bills are expected to address further concerns and differences.
President Bola Tinubu has commended the Nigeria Governors' Forum (NGF) for their unified support of the proposed tax reform bills, including the shift to a derivation-based Value Added Tax (VAT) formula. Tinubu emphasized the governors’ leadership in fostering national unity and advancing economic growth.
In a statement by his Special Adviser, Bayo Onanuga, the President highlighted the bipartisan cooperation shown during consultations between the NGF and the Presidential Committee on Tax and Fiscal Policy. Tinubu applauded Kwara State Governor Abdulrahman AbdulRazaq, Chairman of the NGF, for rallying support among his peers.
However, Senator Ali Ndume, representing Borno South, rejected the proposed 30% VAT derivation formula. Speaking to the media, Ndume argued that the percentage was excessively high compared to the 13% derivation allocated to oil-producing states. He suggested a reduction to 10% or maintaining the 13% benchmark.
Ndume also criticized the Federal Inland Revenue Service (FIRS) for retaining 4% of non-oil revenue as administrative fees, proposing a cap of 1% to curb excessive spending. He urged the Federal Government to prioritize public consultations for tax reforms to avoid controversies.
While the governors support the tax reform bills, Ndume insists on broader public and institutional input before finalizing the legislation.
