The Nigeria Governors’ Forum, (NGF), has finally supported the proposed tax reform Bills of the Bola Tinubu-led administration currently under consideration at the 10th National Assembly.

The NGF also unanimously rejected an increase in the Value-Added Tax (VAT) rate, while proposing a revised sharing formula for distribution .
According to a communiqué issued yesterday, after 2-day sub-national consultation meeting between the governors and the Presidential Tax Reform Committee, led by Taiwo Oyedele, in Abuja.
NGF Chairman and Kwara State governor, AbdulRahman AbdulRazaq disclosed that the Forum endorsed a revised VAT-sharing formula of 50% (equality), 30% (derivation) and 20% based on population, to ensure equitable distribution of resources.
The Governors stressed the importance of maintaining economic stability and safeguarding citizens’ welfare during on-going fiscal reforms.

To address resource allocation inequities, the Forum approved a revised VAT-sharing formula: 50% based on equality, 30% on derivation, and 20% on population. This formula aims to promote fairness, balance resource distribution, and incentivise subnational revenue generation.
The NGF strongly opposed VAT rate increases, citing potential negative impacts on consumers and businesses, and advocated for continued VAT exemptions on essential goods and agricultural produce to protect vulnerable citizens and promote food security.
According to AbdulRazaq, the meeting recommended that there should be no terminal clause for TETFUND, NASENI and NITDA in the sharing of development levies.
“The Forum supports continuation of the legislative process for tax reform bills in the National Assembly but opposes an increase of the current 7.5 percent VAT”, the communiqué read.