BREAKING: Nigerian Governors Reject VAT Increase Amid Tax Reform Deliberations

The Nigeria Governors’ Forum (NGF) has rejected the Federal Government’s proposal to increase the Value Added Tax (VAT), deeming it ill-timed.

During a meeting in Abuja, the governors expressed support for President Bola Tinubu’s Tax Reform Bills but opposed raising the VAT rate, prioritizing economic stability and citizen welfare.

A commite issued after the meeting highlighted key resolutions:

The governors emphasized their commitment to modernizing Nigeria’s tax system for fiscal stability and alignment with global standards.

They supported a revised VAT-sharing formula to ensure fair resource distribution.

The Forum opposed an increase in VAT or a reduction in Corporate Income Tax (CIT) at this time, citing economic stability concerns.

Exemptions for essential goods and agricultural produce from VAT were upheld to safeguard citizen welfare and boost agriculture.

The governors also opposed a terminal clause for TETFUND, NASENI, and NITDA in the allocation of development levies under the reforms.

The meeting backed the ongoing legislative process for the passage of the Tax Reform Bills by the National Assembly.