Nigerian Finance Minister Clarifies VAT Rate, Denies Reports of Increase

Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has refuted reports suggesting an increase in the Value-Added Tax (VAT) rate from 7.5 per cent to 10 per cent. In a statement, Edun emphasized that the current VAT rate remains unchanged at 7.5 per cent, as stipulated in the nation’s tax laws.

According to Edun, the tax system is built on three key pillars: tax policy, tax laws, and tax administration. "The tax system stands on a tripod, namely tax policy, tax laws, and tax administration. All the three must combine well to give us a sound system that gives vitality to the fiscal position of the government," he explained.

Addressing concerns over government actions perceived as burdensome, Edun reassured Nigerians that fiscal policies are designed to promote sustainable economic growth and alleviate poverty, not to hinder them. "Our focus as a government is to use fiscal policy in a manner that promotes and enhances strong and sustainable economic growth, reduces poverty as well as makes businesses flourish," he stated.

Edun also highlighted recent government initiatives to ease the financial burden on citizens, particularly regarding food imports. "In fact, it is on record that the Federal Government, as part of efforts to bring relief to Nigerians and businesses, recently ordered the stoppage of import duties, tariffs, and taxes on rice, wheat, beans, and other food items," he noted.

For clarity, Edun reiterated that VAT remains at 7.5 per cent and will continue to be applied to all VAT-eligible goods and services. "For emphasis, as of today, VAT remains 7.5% and that is what will be charged on all the goods and services that are VAT-able," he concluded.

The Minister’s statement aims to set the record straight and reassure Nigerians that the government is committed to creating a congenial environment for businesses to thrive, rather than imposing additional hardship on citizens.