The Nigerian government has pledged its support for small businesses by offering tax breaks. In a recent announcement made by Zacch Adedeji, head of the country’s tax agency, the Federal Inland Revenue Service (FIRS), during the inaugural MSME Finance Awards hosted by The Economic Forum Series in collaboration with Nairametrics and DigiComm Enterprise, he re-emphasized the government’s commitment to helping small businesses grow.
Specific measures include exempting small businesses from corporate income tax and VAT.
Represented by his special adviser, Collins Omokaro, Adedeji highlighted the government’s focus on creating an enabling environment for MSMEs, specifically through tax relief and exemptions. “The Federal Government, through FIRS, has introduced reforms to reduce the financial burden on MSMEs. Small businesses, as classified under the Company Income Tax Act, are exempt from corporate income tax and from the obligation to collect value-added tax,” he stated.
Adedeji emphasized that these tax policies aim to simplify compliance for MSMEs, promote participation in the formal economy, and enhance the benefits derived from tax incentives. Additionally, he revealed that FIRS is exploring proposals to further increase the tax exemption threshold, bringing even more MSMEs into the supportive fold.
The MSME Finance Awards celebrated the pivotal role MSMEs play in the Nigerian economy, with the Chief Executive Officer of Nairametrics, Ugochukwu Obi-Chukwu, underscoring their significance.
“MSMEs are the backbone of the Nigerian economy, employing over 80 percent of the workforce and driving innovation across various sectors. Continued support for this sector through policies and collaboration between the private and public sectors is crucial,” he remarked.
Highlights of the award ceremony
During the awards ceremony, several organizations were honored for their contributions to the MSME sector. Access Bank was recognized as the MSME Bank of the Year for its tailored financial services for small businesses.
Moniepoint won the MSME Microfinance Bank of the Year award for its innovative microfinance solutions, while E-Tranzact was acknowledged for excellence in payment security, data protection, and fraud prevention. Mastercard also received accolades for Best in MSME Financial Inclusion, recognizing its efforts to expand access to financial services for small enterprises.
Aldo speaking in the ceremony, Jude Ndu, CEO of The Economic Forum Series, highlighted the critical role of MSMEs as economic drivers and stressed the importance of strategic partnerships to bridge financial gaps, provide mentorship, and build capacity within the sector.
In a closing remark, Temitola Adekunle-Johnson, Senior Special Assistant to the President on job creation and MSMEs, noted that many MSMEs are successfully leveraging digital platforms like WhatsApp, Instagram, and YouTube to enhance their market reach and boost revenue.
This commitment from the Federal Government, coupled with innovative contributions from the private sector, positions Nigeria’s MSMEs for a brighter and more sustainable future.
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