There should be no increase in VAT – Govs tell FG 

The forum, representing governors from all 36 states, articulated their stance during a meeting with the presidential tax reform committee held on Thursday to deliberate on critical fiscal and tax reform issues.

In a statement signed by the NGF Chairman and Governor of Kwara State, AbdulRahman AbdulRazaq, the governors emphasized their commitment to comprehensive tax reform while advocating against measures that could exacerbate economic challenges.

Revised VAT Sharing Formula 
The governors proposed a revised VAT-sharing formula to ensure a fairer distribution of resources across states:

The forum recommended removing terminal clauses for the Tertiary Education Trust Fund (TETFUND), National Agency for Science and Engineering Infrastructure (NASENI), and National Information Technology Development Agency (NITDA) in the allocation of development levies under tax reform bills.

The governors expressed their support for the ongoing legislative process at the National Assembly to finalise the Tax Reform Bills.

Governor AbdulRazaq stressed the importance of balancing fiscal reforms with the welfare of Nigerians. “Our tax reform efforts must reflect fairness, equity, and the need to protect our citizens, particularly during these economically challenging times,” he stated.

The current Tax Reforms bills before the National Assembly propose a progressive increase in VAT rates from 10% in 2025 to 12.5% (2026–2029) and 15% from 2030 onward.