Tinubu Praises Governors for Tax Reform Support

President Bola Tinubu praised the Nigeria Governors’ Forum for their unanimous endorsement of four tax reform bills, which aim to modernize Nigeria’s outdated tax laws and enhance economic competitiveness. Initially, the governors opposed the proposed increase in VAT from 7.5% to 10% due to economic concerns, but they have conditionally backed the reforms provided there is no increase in VAT or reduction in Corporate Income Tax. The proposed VAT sharing formula suggests a distribution of 50% based on equality, 30% on derivation, and 20% on population. The reforms include a contentious shift to a derivation-based VAT model, sparking varied opinions, particularly from northern leaders. Tinubu acknowledged the governors' collaboration as a significant step towards fostering unity and addressing Nigeria's development needs. However, the National Economic Council and some northern governors have urged for broader consultations before finalizing the bills.