Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has strongly denied reports suggesting an increase in the Value-Added Tax (VAT) rate from 7.5% to 10%.
In a statement released on Monday, Edun categorically stated that the current VAT rate remains unchanged at 7.5%, as stipulated by relevant tax laws.
“The current VAT rate is 7.5 percent, and this is what the government is charging on a spectrum of goods and services to which the tax is applicable,” Edun affirmed.
He emphasized that neither the Federal Government nor any of its agencies would act contrary to established laws.
The minister’s statement comes in response to claims made by former Vice President Atiku Abubakar and other critics who alleged that President Bola Tinubu’s administration was planning to raise the VAT rate. Atiku had warned that such a move would “become the blazing inferno that will consume the very essence of our people” and exacerbate Nigeria’s economic challenges.
Addressing these concerns, Edun explained the government’s approach to taxation: “The tax system stands on a tripod, namely tax policy, tax laws, and tax administration. All three must combine well to give us a sound system that gives vitality to the fiscal position of the government.”
The finance minister stressed that the government’s focus is on using fiscal policy to promote sustainable economic growth, reduce poverty, and create a favorable environment for businesses.
He pointed out recent government actions aimed at easing economic pressures on Nigerians, such as the suspension of import duties, tariffs, and taxes on essential food items like rice, wheat, and beans.
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“Our focus as a government is to use fiscal policy in a manner that promotes and enhances strong and sustainable economic growth, reduces poverty, and makes businesses flourish,” Edun stated.
He dismissed the notion that the government intends to make life more difficult for Nigerians through its policies.
Instead, Edun reiterated the administration’s commitment to creating a conducive environment for business growth and economic development.
