The Nigeria Governors’ Forum (NGF) and the Presidential Tax Reform Committee convened on January 16, 2025, to discuss critical national issues, including fiscal policy and tax system reform.
The meeting resulted in several key resolutions.
“We reiterated our strong support for the comprehensive reform of Nigeria’s archaic tax laws,” said Abdul Rahman Abdul Razaq, Chairman of the NGF and Governor of Kwara State. “Modernising the tax system is crucial for enhancing fiscal stability and aligning with global best practices.”
The Forum endorsed a revised Value Added Tax (VAT) sharing formula, allocating 50 per cent based on equality, 30 per cent based on derivation, and 20 per cent based on population.
The meeting also 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. “We advocated for the continued exemption of essential goods and agricultural produce from VAT to safeguard the welfare of citizens and promote agricultural productivity,” said Governor Abdul Razaq.
Additionally, 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 Forum expressed support for the continuation of the legislative process at the National Assembly, which will culminate in the eventual passage of the Tax Reform Bills.
