The Nigeria Governors’ Forum (NGF) and the Presidential Tax Reform Committee met on Tuesday, 16 January 2025 to discuss critical fiscal and tax policy reforms, issuing a communique with key resolutions.
The Chairman of the NGF and Kwara State Governor, AbdulRahman AbdulRazaq, signed the communique, which emphasised the urgent need to modernise Nigeria’s tax system.
“The Forum reiterated its strong support for the comprehensive reform of Nigeria’s archaic tax laws. Members acknowledged the importance of modernising the tax system to enhance fiscal stability and align with global best practices,” it stated.
The governors endorsed a revised Value Added Tax (VAT) sharing formula to ensure equitable resource allocation: 50 per cent based on equality, 30 per cent on derivation, and 20 per cent on population.
The Forum rejected any increase in VAT rates or reductions in Corporate Income Tax (CIT), advocating instead for continued exemptions on essential goods and agricultural produce.
Members also recommended that no terminal clause be introduced for the Tertiary Education Trust Fund (TETFUND), National Agency for Science and Engineering Infrastructure (NASENI), and National Information Technology Development Agency (NITDA) in sharing development levies.
According to the communique, “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.”
Lastly, the NGF supported ongoing legislative efforts to pass the Tax Reform Bills.
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