Nigerian governors have voiced strong support for the Federal
Government’s tax reform bills while proposing a revised value-added tax
(VAT) sharing formula.
During a meeting with the Presidential Tax Reform Committee, the Nigeria
Governors’ Forum (NGF) emphasized the need to modernize Nigeria’s tax
laws to enhance fiscal stability and align with global best practices.
The proposed VAT sharing formula suggests 50% based on equality, 30%
on derivation, and 20% on population.
The governors also opposed increasing VAT rates or cutting Corporate
Income Tax (CIT), emphasizing economic stability.
They recommended maintaining exemptions for essential goods and
agricultural products to protect citizens’ welfare.
While some northern leaders have opposed the reforms, President Bola
Tinubu insists the changes aim to benefit all Nigerians, rejecting claims of
sectional bias.