President Bola Tinubu has declared a full Value Added Tax (VAT) exemption on rent, public transportation, and renewable energy, as part of a broader tax reform aimed at easing the economic burden on Nigerians.
He also revealed that essential goods and services such as food, education, and healthcare will now attract 0% VAT.
The announcement was made during his second anniversary address, where Tinubu emphasised that the reforms are focused on economic fairness and supporting low-income households.
He noted that Nigeria’s tax-to-GDP ratio rose from 10% to over 13.5% by the end of 2024—a result of improved tax administration and fairer policies.
The President highlighted that the reforms will eliminate multiple taxation, ease small business growth, and boost disposable income.
Additionally, targeted incentives will now support manufacturing, tech, and agriculture sectors. To enhance transparency, a Tax Ombudsman will be established to protect vulnerable taxpayers.
Tinubu added that a new national fiscal policy is being introduced to guide responsible taxation, spending, and borrowing, aiming to foster inclusive growth and ensure shared prosperity for all Nigerians.
