Babatunji Wusu –
- The NGF convened in Abuja for its first meeting of 2025, with key figures such as the U.S. Ambassador to Nigeria and the Minister of Women Affairs in attendance.
- Governors from several states, including Kwara, Lagos, Abia, and Ogun, participated in the meeting.
- The NGF reiterated its support for tax reform bills but proposed adjustments to the VAT sharing formula, recommending a distribution of 50% based on equality, 30% on derivation, and 20% on population.
- The forum stressed the need for economic stability, opposing any increase in VAT or reduction in Corporate Income Tax at this time.
- Governors also called for continued VAT exemptions on essential goods and agricultural products.
- The NGF recommended that development levies allocated to agencies like TETFUND, NASENI, and NITDA should not have a terminal clause.
- Despite opposition to the tax reform bills, the governors expressed confidence in the National Assembly’s eventual approval of the proposed reforms.
In its first meeting of 2025, the Nigeria Governors’ Forum (NGF) convened at its Abuja secretariat, with prominent figures such as Richard Mills, the American Ambassador to Nigeria, and Minister of Women Affairs Imaan Sulaiman-Ibrahim in attendance. Several state governors, including those from Kwara, Lagos, Abia, and Ogun, joined the gathering, but the official agenda was not disclosed to the press.
During their previous meeting in January, the governors endorsed the Federal Government’s tax reform bills but proposed revisions to the value-added tax (VAT) sharing formula. They recommended a revised distribution structure: 50% based on equality, 30% on derivation, and 20% on population.
The NGF Chairman and Kwara State Governor, AbdulRahman AbdulRazaq, emphasized the importance of economic stability, stating that there should be no increase in VAT or reduction in Corporate Income Tax (CIT) at this time. Furthermore, the governors reiterated their call for VAT exemptions on essential goods and agricultural produce to ensure citizens’ welfare and encourage agricultural growth.
The NGF also proposed that development levies shared by agencies such as TETFUND, NASENI, and NITDA should remain free from a terminal clause. Despite ongoing opposition, particularly from northern governors, to the proposed tax reforms, the NGF expressed confidence in the National Assembly’s support for the bills.
President Bola Tinubu, who submitted four tax reform bills to the National Assembly last year, has remained resolute in pushing for their approval. These include the Tax Administration Bill, Nigeria Tax Bill, and Joint Revenue Board Establishment Bill, as well as a proposal to repeal the law establishing the Federal Inland Revenue Service (FIRS). Despite opposition, the presidency assures that the reforms are aimed at enhancing national revenue management and economic development, rather than serving any regional interests.
