The Federal Government has dismissed rumors suggesting an impending increase in Nigeria’s Value-Added Tax (VAT) from 7.5% to 10%.
The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, clarified that no such proposal is being considered by the administration of President Bola Ahmed Tinubu.
Director of Information and Public Relations, Mohammed Manga in a statement quoted Edun to have reiterated that the government remains committed to fiscal stability and is focusing on economic policies aimed at reducing inflation without imposing additional burdens on Nigerians.
He highlighted recent government initiatives, such as suspending import duties on essential goods, as part of President Tinubu’s efforts to ease the country’s economic challenges.

The Minister assured the public that any future tax reforms would be communicated transparently through official channels, stressing the importance of avoiding misinformation. The statement was released to address growing concerns over a potential VAT hike amid Nigeria’s current economic pressures.

The Federal Ministry of Finance reaffirmed its commitment to keeping citizens informed on all tax and economic policies, ensuring clear and accurate communication.

The Federal Inland Revenue Service (FIRS) has rolled out the implementation of the Integrated Market Revenue Management System (IMRMS), a purpose-built digital platform, to capture the informal sector, especially market traders in the federal government’s tax net.

The FIRS is to collaboration with Market Traders Association of Nigeria (MATAN), the umbrella body for all trading associations in Nigeria, to collect and remit Value Added Tax (VAT) from traders in marketplace, using the IMRMS platform.

The collaboration code named as the VAT Direct Initiative (VDI), is part of a deliberate move to expand the government’s tax base.

MATAN which is the largest player in Nigeria’s market space has a membership of over 40 million traders across the country.

Under the arrangement, MATAN is expected to digitally enumerate its members, give them a digital identity and track their turnover so that VAT accrued is collected and remitted to the FIRS.

Through this initiative, the FIRS will help tackle multiple taxation in the marketplace through partnership with security agencies to curb the activities of touts, miscreants and self-imposed tax collectors involved in illegal tax collection in Nigeria’s market spaces.

Speaking at an the official launch of traders enumeration exercise in Abuja, Mr Adebayo Adefeogbe, a director in the FIRS, said the initiative would grant the government coordinated access to almost 70 per cent untaxed revenue in the informal sector.

He said collecting VAT from over 40 million traders would enable the government to provide basic amenities in marketplaces across the country.

Moses Ige, MATAN National Coordinator of Incentives, urged market leaders who were present at the event, to sensitise members of various market associations to ensure that they are captured for the VAT Direct Initiative (VDI).

He listed the benefits of VAT Direct Initiative for registered traders to include health insurance, micro pension, general insurance cover, low-interest and non-collaterised business loans and grants, provision of  provision of social amenities in marketplaces and free legal services.

Ige said, “All the services, including health insurance scheme, enjoyed by those in the public sector will also be extended to those in the informal sector. Registered MATAN members will have access to free medical care.

“Registered traders will also enjoy insurance cover in case of any loss as a result of disasters, have access to loans, and enjoy micro-pension scheme. We are working with the National Pension Commission (PENCOM) to get our members registered for the contributory pension scheme.

“With the VAT Direct Initiative, the government will get more revenue to execute capital projects in markets across the country.

“We are also partnering with Bank of Industry (BOI) to ensure that every small business owners have access to loans.”

By Ahmed Rufa’i, Dutse

The Jigawa state Internal Revenue Service (JIRS) has accused some revenue generatiing agencies of sabotage in local revenue collection in the state.

The executive chairman of services, Malam Nasir Sabo Idris gave the indication at the launch of Jigawa Enlightenment and Engagement Team (JEET) with the aim of improving revenue generation in the state.

The executive chairman lamented over the lackadaisical attitude of most of the revenue generating agencies in the state towards their mandate of revenue and tax collection.
He also alleged that the little they collected some times are not remitted to the government account.

Malam Nasir Sabo Idris who also observed that the agencies were also not represented at the launching of Jigawa Enlightenment and Engagement Team (JEET), despite timely invitation extended to them

He attributed the continued decline of internally generated revenue in the state to inadequate tax payers enlightenment and engagement in addition to poor commitment by tax and revenue collectors.

According to him with the new strategies applied in modernizing and digitizing tax collection system, the board is targeting to increase the revenue generation by twenty percent in the first quarter of 2024.

The Chairman expressed the optimism that they will increase the state ‘s Internally Generated Revenue (IGR) by sixty percent at the end of next year adding that it will be doubled in the next two years.

According him, the JEET team is aimed at creating more awareness, understanding and cordial relationship between the tax payers and tax collectors in the state with the hope it will block all leakages and tax fraudulent collection.

Malam Idris maintained that the JEET would digitize taxpayers registration as well as enlighten the tax payers about electronic payment to avoid any fraudulent practice.

“Though I’m newly appointed as chairman of the board but we estimated that in 2024 the board would be able to generate N42 billion, and if the leakages are blocked we will double the tax collection by the end of this administration” ,he said.

The chairman identified some duties of the JEET to include tax payers education and enlightenment, registration of tax payers, engagement with stakeholders and Data collection, effective handling of media information among others.

He called on workers union, MDAs and all other stakeholders to cooperate with the team to achieve the desired objectives of moving Jigawa state forward.