President Bola Tinubu has declared a 0% VAT rate on essential goods and services.
This means that rents, public transportation, and renewable energy will be completely exempt from Value Added Tax (VAT).
This is part of a broader tax reform aimed at easing the economic burden on Nigerians.
The announcement was made during his second anniversary address, where Tinubu stressed that the reforms are focused on economic fairness and supporting low-income households.
He noted that Nigeria’s tax-to-GDP ratio rose from 10% to over 13.5% by the end of 2024—a result of improved tax administration and fairer policies.
The President highlighted that the reforms will eliminate multiple taxation, ease small business growth, and boost disposable income.
Additionally, targeted incentives will now support manufacturing, tech, and agriculture sectors. To enhance transparency, a Tax Ombudsman will be established to protect vulnerable taxpayers.
Tinubu added that a new national fiscal policy is being introduced to guide responsible taxation, spending, and borrowing, aiming to foster inclusive growth and ensure shared prosperity for all Nigerians.
