President Bola Tinubu has described consultation between the Nigeria Governors’ Forum and the Presidential Committee on Tax and Fiscal Policy which led to endorsement of his tax reform initiatives as a commendable example of cooperation between the Federal and State governments.
Excited by the endorsement of the initiatives by the governors, President Tinubu also urged the National Assembly to expedite the legislative process for these crucial bills so that the country can swiftly reap the benefits of the reforms.
The President said this in a statement on Friday while commanding the governors for their endorsement of the four Tax Reform Bills currently under consideration by the National Assembly.
“President Tinubu lauds the governors for their bold leadership and commitment to fostering unity among leaders nationwide, transcending regional, ethnic, and political barriers to advance Nigeria’s development,” the president said in a statement on Friday by his spokesperson, Onanuga.
The President, according to the statement, extends special commendations to the Chairman of the Governors’ Forum, Kwara State Governor Abdulrahman AbdulRazaq, for successfully galvanising support among his peers for these transformative tax bills to rejuvenate the national economy and enhance Nigeria’s investment climate.
The President also commended the Progressive Governors Forum, the Northern Governors Forum, and all other groups that made the bipartisan resolution of the controversy stirred by the tax bills possible.
“President Tinubu underscores that the primary aim of the Tax Reform Bills, which is pro-poor, is to promote national interests, improve the competitiveness of Nigeria’s economy, and attract both local and foreign investments.
“He said updating the country’s outdated tax laws is essential to this endeavour.
“The President notes that the dialogue between the NGF and the Presidential Committee on Tax and Fiscal Policy Reform highlights the power of constructive conversation in resolving differences.
“President Tinubu regards the governors as vital contributors to nation-building and affirms his commitment to partnering with them to promote economic growth, national harmony, peace, and stability, the statement said
The President, according to the statement also encouraged other stakeholders with ideas and suggestions for refining the Tax Bills to engage with the ongoing legislative process at the National Assembly.
“Finally, President Tinubu urges the National Assembly to expedite the legislative process for these crucial bills so that the country can swiftly reap the benefits of the reforms,” the statement concluded.
Members of Nigerian Governors Forum had on Thursday endorsed Tinubu’s bid to reform Nigeria’s taxation system through the four executive bills currently at the National Assembly.
The Governors, in a communique issued in Abuja however advocated for a revised VAT sharing formula, which allocates resources as follows: 50% based on equality, 30% based on derivation, and 20% based on population.
According to them, the revised formula will to promote equitable distribution of resources.
The communique reads: “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 modernizing the tax system to enhance fiscal stability and align with global best practices.
“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 Forum advocated for 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.
“The meeting supports the continuation of the legislative process at the National Assembly that will culminate in e eventual passage of the Tax Reform Bills.”
The communique was signed by the Chairman, Nigeria Governors’ Forum and Governor of Kwara State, AbdulRahman AbdulRazaq.