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American Ambassador, Tinubu’s Minister Attends As State Governors Meet In Abuja

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Governors

The Nigeria Governors’ Forum (NGF) convened on Wednesday at its secretariat in Abuja for its first meeting of 2025.

Naija News reports that while the official agenda was not disclosed to journalists at the time of reporting, notable attendees included the American Ambassador to Nigeria, Richard Mills, and the Minister of Women Affairs, Imaan Sulaiman-Ibrahim. Several governors, including those from Kwara, Lagos, Abia, and Ogun, along with some deputy governors, were also present.

At their previous meeting in January, the governors endorsed the Federal Government’s tax reform bills but suggested adjustments to the value-added tax (VAT) sharing formula. They proposed a revised distribution method: 50% based on equality, 30% on derivation, and 20% on population.

In a communiqué issued by NGF Chairman and Kwara State Governor, AbdulRahman AbdulRazaq, the forum emphasized maintaining economic stability: “Members agreed that there should be no increase in the VAT rate or reduction in Corporate Income Tax (CIT) at this time, to maintain economic stability.”

The governors also advocated for continued VAT exemptions on essential goods and agricultural produce to protect citizens’ welfare and boost agricultural productivity.

Additionally, the NGF recommended that development levies shared by the Tertiary Education Trust Fund (TETFUND), the National Agency for Science and Engineering Infrastructure (NASENI), and the National Information Technology Development Agency (NITDA) should not be subject to a terminal clause.

Despite ongoing debates over the tax reform bills, the governors reaffirmed their support for the legislative process, expressing confidence that the National Assembly would eventually pass the proposed reforms.

President Bola Tinubu had, last year, submitted four tax reform bills to the National Assembly, urging lawmakers to approve them. These include the Tax Administration Bill, Nigeria Tax Bill, and the Joint Revenue Board Establishment Bill. He also proposed repealing the law establishing the Federal Inland Revenue Service (FIRS) and replacing it with the Nigeria Revenue Service.

However, the bills have faced strong opposition, particularly from northern governors and regional leaders who argue that the reforms are detrimental to their interests, with some labeling them anti-north.

President Tinubu, however, has remained firm, refusing to withdraw the bills. The presidency has assured Nigerians that the reforms are designed to improve national revenue management and enhance economic development rather than target any specific region.