State Governors under the aegis of the Nigeria Governors’ Forum (NGF) Thursday, January 16, 2025, expressed their strong support for the ongoing tax reforms introduced by President Bola Ahmed Tinubu’s administration towards engendering economic stability in line with global best practices
Governor AbdulRahman AbdulRazaq of Kwara State and Chairman of NGF, disclosed this development in a communiqué issued Thursday after the NGF’s Subnational Consultations and Engagement with the Presidential Tax Reform Committee.
AbdulRazaq stated: “We, members of the Nigeria Governors’ Forum (NGF) and Presidential Tax Reform Committee, convened on the 16th of January, 2025, to deliberate on critical national issues, including the reform of Nigeria’s fiscal policies and tax system, and arrived at the following resolutions:
“The Forum reiterated its strong support for the comprehensive reform of Nigeria’s archaic tax laws.
“Members acknowledged the importance of modernising the tax system to enhance fiscal stability and align with global best practices.”
The Chairman of NGF also said: “The Forum endorsed a revised Value Added Tax (VAT) sharing formula to ensure equitable distribution of resources: 50% based on equality, 30% based on derivation, and 20% based on population.
“Members agreed that there should be no increase in the VAT rate or reduction in Corporate Income Tax (CIT) at this time, to maintain economic stability.”
The communiqué noted: “The Forum advocated the continued exemption of essential goods and agricultural produce from VAT to safeguard the welfare of citizens and promote agricultural productivity.
“The meeting recommended that there should be no terminal clause for TETFUND, NASENI, and NITDA in the sharing of development levies in the bills.”
Governor AbdulRazaq added: “The meeting supports the continuation of the legislative process at the National Assembly that will culminate in the eventual passage of the Tax Reforms Bills.”
Trajectory of Tax Reforms Bills from the Presidency to NASS
ConsumerConnect reports President Bola Ahmed Tinubu, October 3, 2024, had transmitted four Tax Reforms Bills to the National Assembly (NASS), Abuja, FCT, for consideration and passage into law.
However, shortly after President Tinubu’s transmission of the documents, and subsequent debates, resulting in the recent passage for the second reading in the Senate last year, the Tax Reforms Bills have continued to generate heated debates among Nigerians.
The Northern region is reportedly the most vocal in its criticism of the Tax Bills, which have pitted some State Governors under the NGF as well as the Federal lawmakers against the Federal Government.
The National Economic Council (NEC) also, at a point, advised the President to withdraw the bills to allow for further consultations, inputs, and contributions from more stakeholders in the country’s economy.
It is equally noted that the Nigeria Labour Congress (NLC), in its in its New Year message to Nigerians, especially workers January 1, also insisted that the Federal Government should withdraw the hitherto controversial Tax Reforms Bills from NASS.
Comrade Joe Ajaero, President of NLC, in the New Year message titled, “In 2025, hope is in our collective resolve”, said the need to withdraw the bills was based on “the welfare of the Nigerian workers”.
Tinubu: Re-engineering Nigerian economy for development, prosperity won’t be with the ‘old broken book’
Despite the apparent criticisms and uproar that the Tax Reforms Bills have generated in certain sections of the country, President Tinubu has continued to restate that his administration’s task of re-engineering the Nigerian economy for marked development and prosperity will not be with the “old broken book”.
Tinubu again, repeated this while answering questions from a team of select media professionals during his maiden Presidential Media Chat December 23, 2024, in his Bourdillon residence in the highbrow Ikoyi area of Lagos State.
The Nigerian leader averred that there is no going back on the Tax Reforms Bills.
He rather emphasised the overarching objective of the Tax Reforms Bills, stating that the entire process is aimed at enhancing fiscal sustainability and boosting economic growth in the West African country.
President Tinubu further explained that the Federal Government intensifying efforts at simplifying Nigeria’s tax system, broadening the revenue base, and eliminating loopholes that have hindered effective taxation in the economy.
Without improved revenue generation, achieving national development goals, such as infrastructure development, social welfare, and poverty alleviation would remain difficult, the President asserted.
