Nigeria’s Finance Minister and Coordinating Minister of the Economy, Wale Edun, has faulted about a pending increase in the Value-Added Tax (VAT) rate.
There had been reports and reactions that the rate was proposed by the government to jump from 5% to 10%.
However Edu said the current rate remains unchanged in line with the country’s tax laws.
In a statement on Monday, Edun reaffirmed, “The current VAT rate is 7.5%, and this is what the government charges on applicable goods and services. Neither the Federal Government nor any of its agencies will deviate from what the law prescribes.”
Edun highlighted the importance of a balanced tax system built on three foundational pillars—tax policy, tax laws, and tax administration. “These three elements must work in harmony to sustain the government’s fiscal stability,” he said.
The minister reassured Nigerians that the government’s fiscal policies are aimed at fostering economic growth and reducing poverty, countering claims that the government seeks to impose further burdens on its citizens.
“Our goal is to use fiscal policy to enhance sustainable economic growth, reduce poverty, and create a business-friendly environment,” he stated.
Edun addressed media reports that suggested the government was imposing additional hardships, calling such claims inaccurate.
“These reports wrongly imply that the government is making life more difficult for Nigerians, which is not the case. In fact, the government is focused on fostering a conducive environment for businesses to flourish.”
He also pointed to recent government initiatives to ease financial burdens, specifically citing the removal of import duties on key food items.
Edu said: “As part of our relief efforts, the government has halted import duties, tariffs, and taxes on rice, wheat, beans, and other essential food imports.
“For emphasis, VAT remains at 7.5%, and that is what will be charged on all VAT-able goods and services,” he concluded.
