The Nigeria Governors’ Forum has expressed support for the ongoing legislative process aimed at passing President Bola Tinubu’s Tax Reform Bills at the National Assembly.
Following a meeting on Thursday, the governors issued a communique stating their agreement to maintain the current Value Added Tax (VAT) rate and Corporate Income Tax (CIT) to ensure economic stability.
The Forum 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. This revised formula aims to promote equitable distribution of resources.
The communique SaharaReporters obtained partly read: “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 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 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 e eventual passage of the Tax Reform Bills.”
The communique was signed by the Chairman, Nigeria Governors’ Forum and Governor of Kwara State, AbdulRahman AbdulRazaq
