The Nigeria Governors’ Forum (NGF) has thrown its weight behind the proposed tax reform bills currently being deliberated at the National Assembly, emphasizing the need for a modern and equitable tax system to boost revenue generation and economic stability.
In a statement issued on Thursday following a meeting with the Presidential Tax Reform Committee on January 16, 2025, the forum highlighted critical resolutions aimed at overhauling Nigeria’s fiscal policies.
The NGF noted the importance of an equitable sharing formula for Value-Added Tax (VAT) to ensure fair resource allocation across states. The proposed formula allocates 50% based on equality, 30% on derivation, and 20% on population.
“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 statement reads.
The forum reiterated its commitment to modernizing Nigeria’s tax laws, describing the existing system as outdated and inadequate for addressing current economic realities.
“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 statement added.
The NGF also stressed the importance of maintaining the current VAT rate and Corporate Income Tax (CIT) level, citing the need for economic stability amid ongoing challenges.
“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 statement explained.
Additionally, the governors called for the continued allocation of development levies to key agencies such as the Tertiary Education Trust Fund (TETFUND), the National Agency for Science and Engineering Infrastructure (NASENI), and the National Information Technology Development Agency (NITDA).
“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 NGF stated.
The forum concluded by urging the National Assembly to expedite the legislative process to ensure the eventual passage of the tax reform 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 statement read.
