Tinubu Commends Governors' Forum for Supporting Tax Reform Bills

President Bola Ahmed Tinubu has expressed gratitude to the Nigeria Governors’ Forum (NGF) for endorsing four Tax Reform Bills currently under review by the National Assembly.

The President’s appreciation was conveyed in a statement by his Special Adviser on Information and Strategy, Bayo Onanuga.

“President Bola Tinubu expresses his appreciation for the Nigeria Governors' Forum following their unanimous endorsement of the four Tax Reform Bills currently under consideration by the National Assembly,” the statement read.

Tinubu praised the governors for their leadership and commitment to unity, highlighting their efforts to prioritize Nigeria’s progress above regional, ethnic, or political divides. He described the collaboration between the NGF and the Presidential Committee on Tax and Fiscal Policy as a remarkable example of federal and state government cooperation.

Modernizing Nigeria’s Tax System
The President emphasized that the proposed tax reforms aim to modernize Nigeria’s outdated tax laws, enhance the economy’s competitiveness, and attract both local and foreign investments. He noted the reforms are pro-poor, focusing on national interests and inclusive economic growth.

Tinubu also acknowledged the importance of constructive dialogue, citing the recent engagement between the NGF and the tax reform committee as a testament to resolving differences through meaningful conversations.

Revised VAT Sharing Formula and Stability Measures
The NGF's endorsement included support for a revised Value Added Tax (VAT) sharing formula to ensure equitable resource distribution. The proposed formula allocates 50% based on equality, 30% on derivation, and 20% on population.

Additionally, the governors agreed to maintain the current VAT rate and Corporate Income Tax (CIT) to sustain economic stability. They also recommended that essential goods and agricultural produce remain VAT-exempt to safeguard citizens' welfare and promote agricultural productivity.

No Terminal Clause for Development Levies
The forum also advised against introducing terminal clauses for development levies allocated to agencies such as TETFUND, NASENI, and NITDA in the proposed bills, ensuring sustained funding for critical development initiatives.

President Tinubu urged all stakeholders with suggestions or concerns to engage actively in the legislative process, emphasizing the need for collective efforts to refine the bills for national progress.