Nigeria’s Finance Minister Clarifies VAT Rate Remains at 7.5%

By Innocent Eneta,

On Monday, Mr. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, dispelled recent reports suggesting an increase in the Value-Added Tax (VAT) rate from 7.5% to 10%.

In a statement, Minister Edun confirmed that the VAT rate remains unchanged at 7.5%, as stipulated in the current tax laws governing goods and services. “The current VAT rate is 7.5 per cent and this is what the government is charging on a spectrum of goods and services to which the tax is applicable,” Edun stated. “Therefore, neither the Federal Government nor any of its agencies will act contrary to what our laws stipulate.”

Edun emphasized that the tax system in Nigeria relies on a combination of tax policy, tax laws, and tax administration to ensure fiscal stability and promote economic growth. He refuted claims that the government is seeking to impose additional financial burdens on Nigerians, stating, “The imputation in some media reports on the issue of VAT and the opinion articles that have sprouted from them seem to wrongly convey the impression that the government is out to make life difficult for Nigerians.”

The Minister highlighted recent government actions aimed at easing economic pressures, including the suspension of import duties, tariffs, and taxes on essential food items such as rice, wheat, and beans. “For emphasis, as of today, VAT remains 7.5 per cent and that is what will be charged on all the goods and services that are VAT-able,” he reaffirmed.

This clarification aims to address any confusion and reassure the public that the VAT rate is being applied consistently with existing legislation.