- Urges NASS to expedite legislative process
From Juliana Taiwo-Obalonye, Abuja
President Bola Tinubu has applauded Nigeria Governors’ Forum (NGF) following their unanimous endorsement of the four Tax Reform Bills currently under consideration by the National Assembly.
The governors had endorsed a revised Value Added Tax (VAT) sharing formula aimed at promoting equitable resource distribution among states at the Subnational Consultations and Engagement with the Presidential Tax Reform Committee on Thursday.
The new formula allocates 50% based on equality, 30% based on derivation, and 20% based on population, according to the communique issued by Chairman, Nigeria Governors’ Forum, and Governor of Kwara State, Abdul Rahman Abdul Razaq.
The Forum had also agreed to maintain current VAT rates and exempt essential goods from VAT, ensuring economic stability while safeguarding citizens’ welfare. The resolutions had also support ongoing legislative efforts to pass comprehensive tax reform bills in the National Assembly.
In a statement issued by Special Adviser on Information and Strategy, Bayo Onanuga,
President Tinubu lauded the governors for their bold leadership and commitment to fostering unity among leaders nationwide, transcending regional, ethnic, and political barriers to advance Nigeria’s development.
“Thursday’s productive consultation between the Nigeria Governors’ Forum and the Presidential Committee on Tax and Fiscal Policy is a commendable example of cooperation between the Federal and State governments”, he said.
The President extended special commendations to the Forum’s Chairman and Kwara State Governor 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 commended 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.
President Tinubu underscored that the primary aim of the Tax Reform Bills, which is pro-poor, “is to promote national interests, improve the competitiveness of Nigeria’s economy, and attract both local and foreign investments.”
He added that updating the country’s outdated tax laws is essential to this endeavour.
The President noted that the dialogue between the NGF and the Presidential Committee on Tax and Fiscal Policy Reform highlights the power of constructive conversation in resolving differences.
President Tinubu said he 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.
He also encouraged other stakeholders with ideas and suggestions for refining the Tax Bills to engage with the ongoing legislative process at the National Assembly.
President Tinubu concluded by urging the National Assembly to expedite the legislative process for “these crucial bills so that the country can swiftly reap the benefits of the reforms.”