The Nigeria Governors’ Forum (NGF) has issued a communique regarding the Presidential Tax Reform Bill proposed by President Ahmed Bola Tinubu. This announcement follows a subnational consultation with the Presidential Committee on Tax Reforms, after a meeting which took place at Transcorp Hilton, Abuja, from Thursday, January 16, to Friday, January 17, 2025.
The communique which was signed by the Chairman of the Nigeria Governors’ Forum and Governor of Kwara State, AbdulRahman AbdulRazaq, states:
“We, members of the Nigeria Governors’ Forum (NGF) and the presidential tax reform committee, convened on January 16, 2025, to deliberate on critical national issues, including the reform of Nigeria’s fiscal policies and tax system, and reached the following resolutions:
The Forum reiterated its strong support for the comprehensive reform of Nigeria’s outdated tax laws. Members acknowledged the importance of modernizing 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: 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 which saw the Deputy Governor of Abia State, Engr. Ikechukwu Lekwachi Emetu, FNSE, representing Governor Alex Otti,, 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.
