The Nigeria Governors Forum (NGF) convened on Wednesday at its secretariat in Abuja, marking its first official meeting of 2025.
Dignitaries present at the high-profile gathering included the American Ambassador to Nigeria, Richard Mills, and Minister of Women Affairs, Imaan Sulaiman-Ibrahim, who joined the governors in discussing key national issues.
Key Discussions: Tax Reform and VAT Sharing Formula
At their last meeting, the governors had expressed support for the Federal Government’s tax reform bills while proposing a new Value-Added Tax (VAT) sharing formula to ensure a more equitable distribution of resources.
In their latest discussions, they reiterated their proposal for a revised VAT-sharing structure:
- 50% based on equality
- 30% based on derivation
- 20% based on population
A communiqué issued by the NGF Chairman and Governor of Kwara State, AbdulRahman AbdulRazaq, emphasized the importance of economic stability:
“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 Nigeria Governors Forum remains a crucial platform for intergovernmental collaboration, shaping economic and governance policies that impact the nation.