In a communique issued on Thursday following a meeting in Abuja with Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, the governors outlined their positions on key fiscal issues. The statement, signed by NGF Chairman and Governor of Kwara State, Abdulrahman Abdulrazaq, called for an equitable VAT sharing formula to ensure fair distribution of resources.
The proposed formula allocates 50% based on equality, 30% on derivation, and 20% on population.
The communique highlighted the governors’ unanimous support for modernizing Nigeria’s outdated tax laws, emphasizing that such reforms are essential to achieving fiscal stability and aligning with global best practices.
“We advocate comprehensive reforms to enhance the efficiency and fairness of our tax system,” the governors stated.
They further recommended that VAT rates remain unchanged to sustain economic stability, stressing the need to exempt essential goods and agricultural products from VAT to protect citizens’ welfare and promote agricultural growth.
The NGF also expressed concerns about the termination clauses in the proposed development levies for the Tertiary Education Trust Fund, the National Agency for Science and Engineering Infrastructure, and the National Information Technology Development Agency, arguing that these agencies should continue to benefit from the funds.
Additionally, the governors supported the legislative process aimed at passing the tax reform bills. These bills include:
- The Nigeria Tax Bill 2024, establishing a fiscal framework for taxation.
- The Tax Administration Bill, streamlining the legal framework for tax administration and reducing disputes.
- The Nigeria Revenue Service Establishment Bill, which seeks to replace the Federal Inland Revenue Service Act and create the Nigeria Revenue Service.
- The Joint Revenue Board Establishment Bill, aimed at forming a tax tribunal and ombudsman.
President Tinubu had submitted these bills to the National Assembly on October 3, 2024, following recommendations by the Presidential Fiscal and Tax Reforms Committee. The NGF reaffirmed its commitment to supporting their passage and ensuring effective implementation for Nigeria’s economic growth.
