In light of recent media reports suggesting an increase in the Value-Added Tax (VAT) rate, Nigeria's Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, has made an official statement to clarify the situation. Contrary to these reports, the VAT rate has not been increased to 10%, as some articles have claimed. Instead, it remains steady at the current rate of 7.5%.
Edun confirmed that this rate is in alignment with Nigeria’s existing tax laws and is the official VAT chargeable on applicable goods and services. He reassured the public that neither the Federal Government nor any of its agencies have plans to act against established legal tax frameworks.
The Minister also emphasized the importance of a sound tax system, which he described as standing on three pillars: tax policy, tax laws, and tax administration. Together, these elements form a strong foundation that supports the government's fiscal position.
He went on to explain that the government’s focus is to use fiscal policy to promote sustainable economic growth, reduce poverty, and foster a favorable environment for businesses to thrive. This clarification comes as a response to growing concerns sparked by erroneous reports suggesting that the government’s intention is to impose additional financial burdens on Nigerians.
However, Edun made it clear that the government remains committed to alleviating such burdens. In fact, he pointed to recent policies that aim to ease the cost of living and support businesses, such as the removal of import duties, tariffs, and taxes on essential food items like rice, wheat, and beans.
To put any lingering concerns to rest, Edun reiterated: “As of today, VAT remains 7.5% and that is what will be charged on all VAT-able goods and services.”
This statement serves as a reassurance that the government remains focused on creating a business-friendly environment while maintaining policies that promote economic growth and stability for all Nigerians.