Governors under the Nigeria Governors Forum (NGF) have reiterated their unwavering support for the proposed tax reform bill currently under consideration at the National Assembly. The governors emphasised the importance of the legislation in enhancing fiscal efficiency and driving economic growth across the country.
The governors have also endorsed a revised VAT-sharing formula, which allocates resources as follows: 50% based on equality, 30% based on derivation, and 20% based on population.
Nigerian Governors under the Nigeria Governors’ Forum (NGF) have reaffirmed their support for the proposed Tax Reform Bills currently before the National Assembly. #EconomicStability #NationalAssembly pic.twitter.com/mIxgOUUZzm
— Voice of Nigeria (@voiceofnigeria) January 17, 2025
The Chairman of the Nigerian Governors Forum and the Governor of Kwara State, North-Central Nigeria, AbdulRahman AbdulRazaq, disclosed this at the end of the subnational consultations and engagement with the Presidential Tax Reform Committee in Abuja, the nation’s capital.
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In consideration of our economic stability and growth, we, members of the Nigeria Governors’ Forum (NGF), convened sub-national consultations and engagements with the Presidential Tax Reform Committee.
Major outcome of the consultation is the endorsement of the revised Value… pic.twitter.com/9CpXHSy7vC
— Hope Uzodimma (@Hope_Uzodimma1) January 16, 2025
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According to him, the governors have expressed support for the ongoing legislative process aimed at passing President Bola Tinubu’s tax reform bills at the National Assembly.
Governor AbdulRazaq, in a communique issued at the end of the meeting, reads, “We, members of the Nigeria Governors’ Forum (NGF) and presidential tax reform committee, convened on the 16th of January 2025 to deliberate on critical national issues, including the reform of Nigeria’s fiscal policies and tax system, and arrived at the following resolutions:
“The Forum reiterated its strong support for the comprehensive reform of Nigeria’s archaic tax laws. Members acknowledged the importance of modernising the tax system to enhance fiscal stability and align with global best practices.
“The Forum endorsed a revised Value Added Tax (VAT) sharing formula to ensure equitable distribution of resources as follows: 50% based on equality, 30% based on derivation, and 20% based on population.
“Members agreed that there should be no increase in the VAT rate or reduction in corporate income tax (CIT) at this time to maintain economic stability. The Forum advocated for the continued exemption of essential goods and agricultural produce from VAT to safeguard the welfare of citizens and promote agricultural productivity.
“The meeting recommended that there should be no terminal clause for TETFUND, NASENI and NITDA in the sharing of development levies in the bills.
“The meeting supports the continuation of the legislative process at the National Assembly that will culminate in. the eventual passage of the Tax Reform Bills.”
The tax reform bills, however, have since passed a second reading in the Senate and have been referred to the Committee on Finance for further legislative action and are yet to be debated in the House of Representatives.
Senators from the Southeast have said they are not against the bills but need to consult with their governors and other stakeholders in the region.
Also, southern senators have called on Nigerians who are against the bill to desist from introducing regional, ethnic, or tribal sentiments when criticising them.
Meanwhile, Nigeria’s Senate President, Godswill Akpabio, has assured that the National Assembly will do everything within its power to ensure the passage of the tax bills.
The Speaker of the House, Abbas Tajudeen, also expressed confidence in passing the bills on Tuesday.
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