Nigerian governors propositions on tax reform bills

Today, 16.01.2025, the Nigerian Governors Forum proposed a VAT sharing formula of:

• 50% equality

• 30% derivation and 

• 20% based on population.

Also, 

Nigerian governors' are proposing support for:

1. Tax reform bills 

2.  Continuation of the legislative process at the National Assembly that will culminate in the eventual passage of the tax reform bills. 

3. No increase in VAT until economic improves

4. No terminal clause for sharing of development levies in the bills. for: Tertiary Education Trust Fund, National Agency for Science and Engineering Infrastructure and National Information Technology Development Agency 

*Reviews of the Tax Reforms Bill Update*

*Existing VAT sharing formular is:*

 1. Derivation 20% 

 2. Equality 50% 

 3. Population 30%

*The proposed tax reforms formular:*

 1. Derivation 60%

 2. Equality 20%

 3. Population 20%

*Governors' Forum Proposal:*

 1. Derivation 30%

 2. Equality 50%

 3. Population 20%

Las las, na Supreme Court go settle this VAT issue and 100% DERIVATION go be the result.

*Analysis*

This is a good development coming from the governors. 

But 50% equality is kind of lopsided and unnecessarily favor less populated areas.

60% share to derivation as proposed by Taiwo Oyedele seems better.

No more withdrawal of the bill, no more: 

"dead on arrival"

"20 years to wait"

"rhetoric syndrome"

Yes to smooth ride of the bill at NASS for eventual passage into law.

God bless Nigeria!

Ref:

https://punchng.com/breaking-governors-back-tax-reform-bills-reject-vat-increase/

https://x.com/dmightyangel/status/1879937100851679740