President Bola Tinubu has announced that essential goods and services such as food, education, and healthcare will now attract zero per cent Value Added Tax (VAT) as part of fiscal reforms.
He disclosed this in the speech to commemorate his second year in office on Thursday, adding that the move is part of efforts to protect low-income earners struggling with challenges brought on by his reforms.
He said, “We are eliminating the burden of multiple taxation, making it easier for small businesses to grow and join the formal economy. The tax reforms will protect low-income households and support workers by expanding their disposable income.”
“Essential goods and services such as food, education, and healthcare will now attract 0 per cent VAT,” he stated, adding that, “Rent, public transportation, and renewable energy will be fully exempted from VAT to reduce household costs further.”
The President also said Nigeria will do a way with tax waivers, which were introduced to make the country attractive for investments and economic growth, adding that this will be substituted with incentives that are mutually beneficial.
“We are ending the era of wasteful and opaque tax waivers. Instead, we have introduced targeted and transparent incentives supporting high-impact manufacturing, technology, and agriculture sectors. These reforms are not just about revenue but about stimulating inclusive economic growth,” he said.
The Nigerian President also said the country will be look at tapping into its youth population to drive growth and development.
“There is a deliberate focus on our youth, who a friendlier tax environment for digital jobs and remote work will empower. Through export incentives, Nigerian businesses will be able to compete globally. Our National Single Window project streamlines international trade, reduces delays, and enhances Nigeria’s competitiveness.”
On oversight functionality, Mr Tinubu announced the establishment of a tax Ombudsman to ensure fairness, transparency, and accountability in tax administration.
“To promote fairness and accountability, we are establishing a Tax Ombudsman, an independent institution that will protect vulnerable taxpayers and ensure the system works for everyone, especially small businesses.
“Most importantly, we are laying the foundation for a more sustainable future by introducing a new national fiscal policy. This strategic framework will guide our approach to fair taxation, responsible borrowing, and disciplined spending.
“These reforms are designed to reduce the cost of living, promote economic justice, and build a business-friendly economy that attracts investment and supports every Nigerian. Together, we are creating a system where prosperity is shared, and no one is left behind,” he added.