President Bola Tinubu has commended Nigeria’s 36 state governors for supporting the tax reform bills.
Recall that the governors, under the aegis of the Nigeria Governors’ Forum (NGF), rose from its meeting with the Presidential Committee on Fiscal and Tax Reforms held in Abuja on Thursday and agreed on the modalities for sharing the value added tax (VAT) revenue.
The NGF agreed that the VAT accruals should be shared 50 per cent based on equality, 30 per cent on derivation and 20 per cent based on population to guarantee a fair distribution of resources.
The two parties also reached a consensus to shelve the planned increase of VAT rates and instead, introduce a more equitable revenue-sharing formula.
Following the governors’ gesture, Tinubu in a statement by his spokesman, Mr Bayo Onanuga, praised the NGF for their commitment to fostering unity among leaders nationwide, transcending regional, ethnic, and political barriers to advance Nigeria’s development.
“President Bola Tinubu expresses his appreciation for the Nigeria Governors’ Forum following their unanimous endorsement of the four Tax Reform Bills currently under consideration by the National Assembly,” he said in the statement.
“Thursday’s productive consultation between the NGF and the Presidential Committee on Tax and Fiscal Policy is a commendable example of cooperation between the federal and state governments,” the president added.
The presidency said the dialogue “highlights the power of constructive conversation in resolving differences.”
Tinubu thanked the chairman of the NGF and governor of Kwara State, Mr 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.
“He also commends 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.”
The president said the legislation are “pro-poor,” meant 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“He said updating the country’s outdated tax laws is essential to this endeavour.
“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 president called on other stakeholders with ideas and suggestions for refining the Tax Bills to engage with the ongoing legislative process at the National Assembly.
Onanuga further quoted Tinubu as asking the “national assembly to expedite the legislative process for these crucial bills so that the country can swiftly reap the benefits of the reforms”.
