Breaking: Governors Reject Federal Government’s VAT Increment Proposal

The Nigeria Governors’ Forum (NGF) has expressed its opposition to the proposed increase in Value Added Tax (VAT) from 7.5% to 10%, labeling the initiative as ill-timed.....KINDLY READ THE FULL STORY HERE▶

This stance was taken during a meeting held in Abuja on Thursday, where the governors highlighted the potential impact of the VAT hike on Nigerians already struggling with high living costs in the current economic climate.

While rejecting the VAT increase, the governors reaffirmed their support for the ongoing legislative process surrounding the Tax Reform Bills. They also lauded the efforts of the Presidential Fiscal Policy and Tax Reforms Committee in tackling systemic inefficiencies in Nigeria’s tax system.

Speaking on the broader fiscal challenges, the committee emphasized the need for reform, citing issues with tax revenue, overall government revenue, and fiscal management.

“We face significant challenges in our revenue system—both tax and non-tax—leading to a fiscal crisis,” the committee noted.

The committee detailed its mandates: improving governance and financial coordination across federal and state levels, transforming revenue generation, and optimizing government assets.

Regarding the proposed VAT increase, it was clarified that the adjustment from 7.5% to 10% is slated for 2025, pending legislative approval. Provisions for subsequent increments have also been included in the proposed law, though the timeline for enactment remains uncertain.