Northern governors reaffirm support for Tinubu, amid VAT sharing dispute

By Kunle Sanni

Governor of Nasarawa State, Abdullahi Sule, has disclosed that northern governors remain fully supportive of President Bola Tinubu’s administration, despite their opposition to a proposed change in the value-added tax (VAT) sharing formula.

In a recent Channels Television interview, Sule clarified that the Northern States Governors Forum (NSGF), which represents 19 northern states, is solely opposed to a derivation-based VAT distribution model. This model would allocate tax revenue based on where goods and services are consumed rather than the location of corporate headquarters. The governors argue this would financially disadvantage northern states, which depend heavily on a broader revenue-sharing system.

Following a recent NSGF meeting, the governors issued a communiqué rejecting the tax amendment bill that would implement this VAT shift. “The current VAT structure supports a wider distribution, while the derivation model would limit funds to fewer states,” the communiqué stated.

President Tinubu had urged the National Assembly on October 13 to pass four tax reform bills, including the Nigeria Tax Bill, the Tax Administration Bill, and the Joint Revenue Board Establishment Bill. Among these reforms is the proposed adjustment to the VAT sharing formula.

Sule emphasized that the northern governors’ position on VAT is unrelated to any dissatisfaction with Tinubu’s administration. “The north played a key role in ensuring Tinubu’s election. We fully support his initiatives, especially those in agriculture and livestock,” Sule said. “Our concern is simply with the fairness of the VAT allocation method.”

He added that the NSGF’s meeting, which included members from various political affiliations and traditional leaders, was focused on ensuring a fair distribution of national resources.

Sule clarified that the governors have no issue with raising VAT to 10 percent or with other parts of the tax reform agenda. “We’re solely concerned about the allocation formula. We believe all regions should benefit fairly, and expressing our views does not indicate opposition to the President,” he concluded.