Breaking: Nigeria Governors’ Forum endorses comprehensive tax reforms

By Saheed Ibrahim
The Nigeria Governors’ Forum (NGF) has expressed its strong support for the comprehensive reform of the country’s archaic tax laws, emphasising the need to modernise the tax system to enhance fiscal stability and align with global best practices.


This resolution followed the Forum’s meeting with the Presidential Tax Reform Committee held on 16th January 2025.
In a communiqué issued at the end of the consultations, as obtained on the Forum’s X account, the NGF highlighted key resolutions aimed at ensuring equitable resource distribution and economic stability.
Among these was the endorsement of a revised Value Added Tax (VAT) sharing formula.
Under the new framework, 50% of VAT revenue will be distributed based on equality, 30% on derivation, and 20% on population.
The Forum also stressed that there should be no increase in the VAT rate or reduction in the Corporate Income Tax (CIT) rate at this time to maintain economic stability.
It advocated for the continued exemption of essential goods and agricultural produce from VAT to safeguard citizens’ welfare and promote agricultural productivity.
Furthermore, the NGF recommended the retention of development levies for TETFund, NASENI, and NITDA in the tax reform bills, rejecting any terminal clauses for these funds.
The meeting also expressed support for the legislative process at the National Assembly to ensure the eventual passage of the Tax Reform Bills.
The communiqué was signed by AbdulRahman AbdulRazaq, Chairman of the NGF and Governor of Kwara State, who underscored the importance of collaborative efforts to achieve a robust and inclusive tax system.