Finance Minister Wale Edun Affirms “VAT Rate Stays at 7.5%”
Nigeria’s Minister of Finance, Wale Edun, has reaffirmed that the value-added tax (VAT) rate remains at 7.5 percent. The clarification comes after a flurry of media reports and public discourse suggesting a potential increase to 10 percent.
On Monday, September 9, Edun addressed concerns by emphasizing that the federal government has not altered the VAT rate.
“The current VAT rate is 7.5%, and this is the rate applied to a broad range of goods and services as prescribed by our tax laws,” Edun asserted.
He further explained that any suggestions of an increase are unfounded.
“Neither the Federal Government nor any of its agencies will act contrary to what our laws stipulate,” he said.
Edun also outlined the essential components of Nigeria’s tax system: tax policy, tax laws, and tax administration. He emphasized that all three elements must work in harmony to support a robust fiscal framework.
The minister highlighted that the government’s primary focus is on leveraging fiscal policy to stimulate sustainable economic growth, alleviate poverty, and foster a thriving business environment.
“Recent media reports and opinion pieces have incorrectly suggested that the government is intent on making life harder for Nigerians,” Edun noted. “This is not the case. Our policies are designed to create a supportive environment for businesses and to provide relief to our citizens.”
Edun further highlighted recent government measures aimed at easing financial pressures on Nigerians, such as the suspension of import duties, tariffs, and taxes on essential food items including rice, wheat, and beans.
The debate around VAT has intensified following comments by Taiwo Oyedele, chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, who recently advocated for a VAT rate increase. This proposal has faced criticism from various quarters, including Atiku Abubakar, former Vice President of Nigeria, who described such an increase as a “regressive and punitive policy” that could exacerbate the domestic cost-of-living crisis.
