NGF endorses Tax Reforms, Tinubu has his way

Nigerian governors are eating the humble pie, as they agree to accept President Bola Tinubu’s Tax Reform Bills in the National Assembly

In a significant development, the 36 State Governors, under the Nigeria Governors’ Forum, NGF, Thursdsy declared their support for the Tax Reform Bills, signaling a unified stance on the matter.

READ ALSO: Why the North opposes Tinubu tax reform bills

As key influencers of legislative decisions, the governors are expected to guide National Assembly members, many of whom belong to their political parties, to align with the proposed reforms.

The bills are currently under consideration by the National Assembly, awaiting approval to become law.

Following a meeting with the Oyedele-led presidential tax reform committee, the governors issued a communique outlining their resolutions:m

The members of the Nigeria Governors’ Forum 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The Forum reiterated its strong support for the comprehensive reform of Nigeria’s outdated tax laws, emphasizing the need to modernize the system to enhance fiscal stability and align with global standards.

The governors also endorsed a revised Value Added Tax, VAT, sharing formula to ensure a more equitable distribution of resources.

The formula proposes that 50% of VAT be based on equality, 30% on derivation, and 20% on population.

Additionally, they agreed that there should be no increase in the VAT rate or reduction in Corporate Income Tax at this time, in order to maintain economic stability.

The Forum further advocated for the continued exemption of essential goods and agricultural produce from VAT to protect citizens’ welfare and boost agricultural productivity.

The meeting also recommended that there should be no terminal clause for TETFUND, NASENI, and NITDA in the distribution of development levies in the bills.

Finally, the Forum expressed support for the continuation of the legislative process at the National Assembly, which will eventually lead to the passage of the  Bills.

This endorsement by the NGF is expected to fast-track the approval process, providing a much-needed boost to the government’s fiscal reform agenda.

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