The Nigeria Governors’ Forum, NGF, has rejected moves by the Federal Government to increase Value Added Tax, VAT.

The governors, while making their position known after a meeting in Abuja, said the move is untimely.

According to a communique issued after the meeting, the governors backed President Bola Tinubu’s controversial Tax Reform Bills.

The Forum reiterated its strong support for the comprehensive reform of Nigeria’s archaic tax laws, in order to enhance fiscal stability and align with global best practices, but 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 Forum advocated for the continued exemption of essential goods and agricultural produce from VAT to safeguard the welfare of citizens and promote agricultural productivity.