The Nigerian Governor's Forum (NGF) has thrown their support behind the tax reform policy of President Bola Tinubu.

The governors made their position known after a meeting with the presidential tax reform committee, which was convened on Thursday to deliberate on critical national issues, including the reform of Nigeria’s fiscal policies and tax system.

According to a statement signed by the Chairman of the NGF, Governor Abdulrahman Abdulrazaq of Kwara State, the governors arrived at several resolutions at the meeting.

Abdulrazaq said the NGF "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."

He said the governors endorsed a revised Value Added Tax (VAT) sharing formula to ensure equitable distribution of resources.

They proposed the VAT to be 50% based on equality, 30% based on derivation, and 20% based on population.

The governors 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.

They also 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 governors then expressed support for the continuation of the legislative
process at the National Assembly that will culminate in the eventual passage of the Tax Reform Bills.