Tag: VAT

7.5% VAT hits mobile transfers, USSD from Jan. 19

Aminu Imam
VAT mobile transfers

Nigerians will start paying a 7.5 per cent Value-Added Tax (VAT) on selected banking services, including mobile bank transfers and USSD transactions, from January 19, 2026, following a directive from the Nigerian Revenue Service, (NRS). The development was disclosed in a notice sent to customers by Moniepoint on Wednesday, informing them of a government-backed regulatory change mandating financial institutions to begin collecting and remitting VAT on certain electronic banking charges. According to the notice, the VAT will apply to service fees such as mobile banking transfer charges, USSD transaction fees…

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₦5trillion VAT windfall for states, as new formula begins

Aminu Imam
VAT windfall for states

The 36 states of the federation are set to receive an estimated ₦5.07trillion as their share of Value-Added Tax (VAT) in 2026, following the commencement of a new VAT sharing formula introduced under the National Tax Acts, findings have shown. This development is contained in the 2026–2028 Medium-Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP) approved by the Federal Executive Council. According to the fiscal framework, the implementation of the new National Tax Acts from January 2026 will reduce the Federal Government’s VAT share from 15% to 10%, while the…

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“We have no objection to Govs.’ proposed VAT-sharing formula” – Oyedele 

Aminu Imam
Screenshot 20250118 205225

Chairman of the Presidential Committee on Tax policy and Fiscal reforms, Taiwo Oyedele, says his committee has no objection to the newly-proposed value-added tax (VAT) sharing formula by the Nigeria Governors’ Forum, (NGF). Oyedele stated this yesterday, during an event organised by ‘The Covenant Nation’, to facilitate national development. Recall that on January 16, the NGF backed the proposed tax reform Bills currently at the 10th National Assembly. The NGF also proposed a new “equitable” sharing formula for VAT. The development was an outcome of a meeting between the NGF…

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NGF back Tax Reform Bills, proposes 50:30:20 VAT ratio

Aminu Imam
NGF back tax reform

The Nigeria Governors’ Forum, (NGF), has finally supported the proposed tax reform Bills of the Bola Tinubu-led administration currently under consideration at the 10th National Assembly. The NGF also unanimously rejected an increase in the Value-Added Tax (VAT) rate, while proposing a revised sharing formula for distribution . According  to a communiqué issued yesterday, after 2-day sub-national consultation meeting between the governors and the Presidential Tax Reform Committee, led by Taiwo Oyedele, in Abuja. NGF Chairman and Kwara State governor, AbdulRahman AbdulRazaq disclosed that the Forum endorsed a revised VAT-sharing…

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Tax Reform Bills: Northern lawmakers stand firm, as regional concerns deepen

Aminu Imam
Northern lawmakers on Tax

Amid growing regional tensions over the proposed tax reform Bills, Northern lawmakers have intensified their efforts to safeguard the regions interests.  The League of Northern Democrats (LND) has formed a technical committee to scrutinise the Bills, citing potential risks to Northern economic and social stability. The LNDs spokesman, Dr Ladan Salihu, revealed that the committee, composed of legal, financial, and legislative experts, has a one-week deadline to recommend amendments that ensure justice and equity. This initiative underscores our commitment to promoting national unity and protecting the developmental interests of our…

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Tax Reform Bills: RKRG cautions against bypassing constitutional process on proposed VAT sharing formula

Aminu Imam
RKRG cautions on VAT

Advocates equity in distribution The Renewed Kaduna Restoration Group, (RKRG), a nonpartisan organization advocating for good governance, has raised concerns regarding the proposed amendment to the Value-Added Tax (VAT) sharing formula under the Tax Reform Bill currently under consideration by the 10th National Assembly. In a statement issued yestetday, signed by its chairman, Alhaji (Dr.) Ahmed Tijjani Ramalan, the RKRG emphasized that any changes to the VAT distribution framework must strictly adhere to Nigeria’s constitutional provisions. The group cited Sections 1(1), 153(1)(n)(2), and 162 of the Constitution, which assign the…

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FG confirms plan to raise VAT rate

Aminu Imam
FG on VAT

The Federal Government has confirmed plans to raise the Value-Added Tax, (VAT) rate. Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed this while speaking at an investor meeting during the ongoing IMF/World Bank Annual meetings in Washington DC, USA. According to the minister, the proposed VAT increase, currently under consideration by the National Assembly, will be applied gradually and will primarily affect luxury items. He said essential items consumed by poorer and vulnerable Nigerians would remain exempt from VAT or attract a zero rate. Edun added…

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Gas generators, CNG/LPG dual fuel vehicle, 61 items exempted from VAT – FG

Aminu Imam
FG on VAT

The Federal Government has exempted 63 items from value-added tax (VAT). According to a post on X yesterday by the Chairman, Presidential Committee on fiscal policy and tax reforms, Taiwo Oyedele, the exempted items are contained in an official Gazette for the Value-Added Tax (Modification) Order, 2024, dated September 3, 2024. Recall that on Wednesday, Minister of Finance and Coordinating Minister of the economy, Wale Edun, announced the introduction of concessions aimed at revitalising the oil and gas industry to ensure a boost in Nigerias upstream and downstream sectors. Edun…

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FG refutes reports of VAT increase to 10%

Aminu Imam
FG on VAT

The Federal Government has debunked claims that it plans to increase the Value Added Tax (VAT) rate from 7.5% to 10%. The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, who disclosed this in a statement posted by the Special Adviser on Information and Strategy, Bayo Onanuga, explained that the tax system is built on three pillars: tax policy, tax laws, and tax administration. He emphasised that these elements must function cohesively to establish a robust system that strengthens the governments fiscal position. The Minister noted that…

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“VAT, fuel price hike, blazing inferno that will consume Nigerians” Atiku

Aminu Imam
Atiku on VAT

Former Vice-President, Atiku Abubakar, has warned of the dire consequences of the Value-Added Tax (VAT) and fuel pump price increase, saying the development is an inferno that is capable of consuming Nigerians. Atiku said the increment smacks of insensitive, saying the planned increase in VAT, coming on the heels of the increased fuel pump price is capable of doing more damages to the already fragile economic situation in the country. According to Abubakar, this move is part of a new era of “regressive and punitive policies” that will deepen the…

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