On Friday, President Bola Tinubu praised the Nigeria Governors’ Forum (NGF) for their unanimous approval of the revised tax reform bills currently being reviewed by the National Assembly.
Tinubu commended the governors for their leadership and dedication to national unity, emphasizing that the consensus transcended regional, ethnic, and political divides in support of Nigeria’s progress.
In a statement by his Special Adviser, Bayo Onanuga, the President highlighted that the governors’ endorsement on January 17, 2024, included the controversial shift to a derivation-based VAT model. Tinubu described the consultation between the NGF and the Presidential Committee on Tax and Fiscal Policy as an excellent example of collaboration between federal and state governments.
The President also praised Kwara State Governor Abdulrahman AbdulRazaq, the NGF Chairman, for effectively rallying support for the tax reforms. He acknowledged the Progressive Governors Forum, the Northern Governors Forum, and other groups for helping resolve the disagreements surrounding the bills.
Tinubu emphasized that the main goal of the reforms is to enhance national interests, boost Nigeria’s economic competitiveness, and attract both local and foreign investments. He also noted that the dialogue between the NGF and the Presidential Committee highlighted the importance of constructive conversation in overcoming differences.
The President reaffirmed his commitment to partnering with governors to foster economic growth, unity, and stability in Nigeria.
Ndume Opposes 30% VAT Derivation Share
Meanwhile, Borno South Senator Ali Ndume expressed his opposition to the proposed 30% VAT derivation sharing formula endorsed by the governors. In an interview with Saturday PUNCH, Ndume argued that 30% was too high, considering that oil-producing states receive only 13% derivation. He suggested that the derivation share should be reduced to 10%, or at most, remain at 13%.
Ndume welcomed the governors’ shift but urged further discussion, calling for input from the National Economic Council, Northern Elders Forum, and the public. He also advocated for public hearings to allow citizens to voice their opinions on the tax bills.
Additionally, Ndume called for a reduction in the Federal Inland Revenue Service’s 4% retention of non-oil revenue, arguing that it was excessive and encouraged wasteful spending.
The senator stressed the need for careful, transparent processes when proposing public policies, urging the Federal Government to learn from the controversies caused by the tax bills and allow ample time for public input before enacting reforms.
