The Nigeria Governors’ Forum (NGF) has rejected any immediate increase in the Value Added Tax (VAT), citing potential economic pressure on businesses and households already dealing with inflation.

In a communique issued after a meeting with the Presidential Tax Reform Committee in Abuja yesterday, the governors expressed support for the ongoing legislative process to modernise Nigeria’s tax laws but opposed a hike in VAT from the current 7.5%. 

They endorsed a revised VAT sharing formula that allocates 50% of revenue based on equality, 30% on derivation, and 20% on population.

The governors also advocated for the continued exemption of essential goods and agricultural produce from VAT to protect citizens and promote food security.

They rejected terminal clauses for development levies in the Tax Reform Bills, emphasising the need for sustained funding for agencies like TETFUND, NASENI, and NITDA to support national development.