According to Naija News, the federal government was also advised by the governors to increase taxes on boars and levy anyone earning N30,000 or more monthly.

The proposal was presented by the Nigerian governors during a meeting with President Buhari in July 2022 at the Presidential Villa in Abuja.

According to the platform, the governors provided the government with advice to stop the country’s impending economic collapse.

The governors also recommended that the government start putting the latest Stephen Oronsaye’s Report recommendations into practice, which called for merging and closing agencies and parastatals with redundant or controversial functions.

It was said that the governors were concerned about the deteriorating state of the economy and a proposal to restore fiscal discipline was presented to the federal government.

As part of measures to restore fiscal discipline, the governors advised the federal government to reduce expenditure immediately by eliminating petrol subsidy and NNPC-funded projects, cap the Social Investment Programme (SIP) and National Poverty Reduction with Growth Strategy (NPRGS) budgets to N200 billion, eliminate extra-constitutional deductions from FAAC and reduce SWV items for SDG and NASS Constituency projects.

The governors also asked the government to reduce duplications (e.g. empowerment programmes) and waste, reduce the 1% granted to NASENI to 0.2%, amend the Act in the 2022 Finance Bill, reduce personnel costs of federal government MDAs, and expedite the privatization of non-performing assets like the NDPHC power plants.

Similarly, the governors urged that the 2023 – 2025 MTEF should reflect the suggestions and the government’s commitment to restore fiscal discipline while the planned 22% increase in salaries in 2023 is reconsidered. They added that the fiscal deficit should be reduced to no more than 2% of GDP in 2023 – 2025.

To conserve foreign exchange and grow the reserves, the governors suggested that foreign trips by MDAs, including budgetary-independent agencies such as FIRS, NPA, NIMASA, and NCC, be put on hold for at least one year.

They also urged the Ministry of Foreign Affairs not to issue requests for Visas to foreign embassies for federal government officials and their families, unless express approval is granted by the presidency.

The governors further suggested the movement from State Income Taxation to Consumption Taxation, adding that with the introduction of 3% Federal Income Tax, state-level PIT should be abolished.

Similarly, they suggested that state Sales Taxes (flat rate of 10%) should be enacted for the 36 States and FCT, VAT levels increased to 10% with a timeline to raise it to between 15% and 20%, as well as re-introduction and passage of VAT into the Exclusive List. It was not clear whether all governors agreed with the position on VAT being moved to the exclusive list.

To improve tax revenues, they suggested that the federal government should introduce a flat 3% Federal Personal Income Tax on all Nigerians earning more than N30,000 per month, adding that persons earning less than N30,000 per month whether employed or not, including farmers and traders, should pay a monthly FPIT of N100.

Similarly, telecoms firms and NIMC should collaborate to ensure deduction of this from phone credit of individuals and linking to NIN and BVN.

The governors also suggested centralization of the collection of all federal oil and non-oil taxes in one agency, the FIRS, while Customs, NPA, and others assess and issue demands.

To position Nigeria to take advantage of the gas needs in Europe, they suggested that the Federal Government increase crude oil and gas production, address outstanding disputes regarding gas ownership in PSCs (such as Nnwa-Doro, OML 129), and offer incentives to hasten the development of deep offshore fields that are vandalism-resistant, such as Bonga SW (Shell), Preweoi (Total), Zabazaba (ENI), and Owowo (Exxon).

The governors also recommended that the government support the Dangote Refinery’s early completion (and pre-finance it, if required) in order to prevent significant future outflows of foreign currency.