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Why we reject NGF VAT reform proposal – Arewa Revival Project

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By Ayodele Ariyo

The Arewa Revival Project has firmly rejected the Nigerian Governors Forum (NGF) VAT reform proposal, pledging full support for the Tinubu Tax Reform Bill, which it believes offers a more progressive and sustainable path for Nigeria’s economic future.

In a press statement delivered in Abuja on Wednesday by the coordinator, Hon. Muttaka Ahmed Ibrahim, criticizing the NGF’s proposed VAT sharing formula, which he said divides revenue based on equality, derivation, and population percentages.

The Arewa Revival Project views this formula as a blatant prioritization of self-interest over national development, arguing that it lacks the transparency and accountability necessary to drive real growth across the states.
“The NGF’s approach is disconnected from the realities on the ground. It ignores the urgent need for policies that foster state-level development and industrialization, and it perpetuates the cycle of dependency and inefficiency”, Hon. Muttaka Ahmed Ibrahim.

In stark contrast, the Tinubu Tax Reform Bill proposes a VAT revenue-sharing model that allocates 60% of revenue based on consumption, 20% based on population size, and 20% equally among all states.

This model, the group asserts, incentivizes states to boost production, invest in industrialization, and create job opportunities for the youth, while simultaneously addressing the root causes of insecurity plaguing the nation.
“The Tinubu Tax Reform Bill is a forward-thinking policy that encourages states to harness their resources and drive internal growth,” Hon. Ibrahim emphasized.

He added, “It promotes collaboration between governors and the private sector in key areas such as agriculture, mineral resources, and transportation, thereby expanding revenue streams and fostering sustainable development.”

Highlighting the dire economic conditions in the North, where poverty rates have soared to 70%, the Arewa Revival Project condemned the persistent self-serving actions of some governors.

“We can no longer stand by as our leaders prioritize personal gain over effective governance and societal progress,” the statement read.
“Our people deserve a system that prioritizes their welfare and future, not the accumulation of wealth and political power by a select few.”

The Arewa Revival Project lauded the Senate President for his commitment to transforming legislative leadership and called on all stakeholders—including the President of the Federal Republic of Nigeria, the Nigerian Senate, the House of Representatives, the Federal Inland Revenue Service (FIRS), the News Agency of Nigeria (NAN).

And the National Civil Society Council of Nigeria, the Nigeria Labour Congress (NLC), the Trade Union Congress (TUC), and Academic Staff Union of Universities (ASUU)—to reject the NGF VAT proposal and support the Tinubu Tax Reform Bill.

“In unity, we can build a future where the interests of the people take precedence over personal ambition,” the statement concluded. “It is time to create a Nigeria that thrives on fairness, transparency, and shared prosperity.”

Tags: Arewa Revival ProjectNGFWhy we reject NGF VAT reform proposal - Arewa Revival Project
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