Nigerian Governors Throw Weight Behind Tax Reform

Nigerian Governors Throw Weight Behind Tax Reform

Thursday, January 16, 2025 8:34 pm


Tax Reform

Tax Reform

Members of the Nigeria Governors’ Forum (NGF) held a meeting with the Presidential Tax Reform Committee, on the 16th of January 2025 to deliberate on critical national issues, including the reform of Nigeria’s fiscal policies and tax system, they (the former) threw their weight behind it.

This contained in a communique signed by H.E. AbdulRahman AbdulRazaq Chairman, Nigeria Governors’ Forum and Governor of Kwara State.

 

See the communique below:

COMMUNIQUE ISSUED AT THE END OF THE SUBNATIONAL CONSULTATIONS AND ENGAGEMENT WITH THE PRESIDENTIAL TAX REFORM COMMITTEE.

 

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:

 

  1. 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.

 

  1. The Forum endorsed a revised Value Added Tax (VAT)

sharing formula to ensure equitable distribution of resources:

 

o 50% based on equality,

o 30% based on derivation, and

o 20% based on population.

 

  1. 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.

 

  1. The meeting recommended that there should be no terminal

clause for TETFUND, NASENI, and NITDA in the sharing of

development levies in the bills.

 

  1. 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.

 

𝐒𝐢𝐠𝐧𝐞𝐝

H.E. AbdulRahman AbdulRazaq

Chairman, Nigeria Governors’ Forum & Governor of Kwara State.


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