The Nigeria Governors’ Forum supports modernised tax laws, a revised VAT formula, and ongoing legislative processes for reform
The Nigeria Governors’ Forum (NGF) and the Presidential Tax Reform Committee convened on 16 January 2025 to address pressing national fiscal issues and discuss reforms to Nigeria’s tax system.
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Chaired by Governor AbdulRahman AbdulRazaq of Kwara State, the meeting concluded with resolutions aimed at modernising tax laws and promoting equitable resource distribution.
Key Resolutions
- Modernising Tax Laws
The NGF reiterated its commitment to overhauling Nigeria’s outdated tax system. The members highlighted the need to align the nation’s fiscal policies with global best practices to enhance economic stability and improve revenue collection. - Revised VAT Sharing Formula
The Forum endorsed a revised Value Added Tax (VAT) sharing formula designed to ensure equitable resource distribution:- 50% based on equality
- 30% based on derivation
- 20% based on population
- Maintaining VAT and CIT Rates
To safeguard economic stability, the Forum recommended maintaining the current VAT rate and Corporate Income Tax (CIT). It also advocated for the continued exemption of essential goods and agricultural produce from VAT to protect citizens and boost agricultural productivity. - Development Levies and Agencies
The NGF proposed the removal of terminal clauses for agencies such as TETFUND, NASENI, and NITDA in development levy sharing, ensuring their continued contribution to national growth. - Legislative Support for Tax Reform Bills
The Forum endorsed the ongoing legislative efforts at the National Assembly, expressing confidence in the eventual passage of the Tax Reform Bills to modernise fiscal policies effectively.
Commitment to Economic Stability
The NGF stressed its collective dedication to fostering fiscal sustainability and equity.
“We remain committed to ensuring that Nigeria’s tax laws reflect the needs of its citizens while supporting economic growth,” said Chairman AbdulRahman AbdulRazaq.
The Forum’s resolutions signify a strategic step towards achieving a fair, efficient, and inclusive tax system that promotes national development and aligns with global standards.
