The Nigerian government is stepping up its support for small businesses with significant tax relief measures, potentially exempting many entrepreneurs from key taxes. Taiwo Oyedele, chairman of the Presidential Fiscal Policy and Tax Reforms Committee, announced that the government has proposed raising the turnover threshold for tax exemptions to N50 million.
Speaking on Channels Television, Oyedele explained that businesses with an annual turnover of N50 million or less would no longer need to pay value-added tax (VAT), withholding tax, or company income tax (CIT). This is an increase from the current threshold of N25 million.
“This proposal will exempt small businesses from almost all taxes—no VAT, no withholding tax, no company income tax,” Oyedele stated. “At N50 million, around 97% of small businesses in Nigeria will benefit from these changes, providing much-needed relief for entrepreneurs.”
The tax exemptions are part of a larger effort to ease financial burdens on MSMEs and boost Nigeria’s economic recovery. The government also aims to encourage job creation by offering tax incentives to private-sector employers. According to Oyedele, businesses that hire more employees than their previous three-year average will be eligible for further tax relief.
“We’ve proposed that employers who expand their workforce will receive tax incentives, and those who provide transportation support for their employees can also qualify for relief,” Oyedele added.
These measures are expected to support growth for small businesses, which are vital to Nigeria’s economy, while also addressing the country’s unemployment challenges. The proposals will be submitted to the National Assembly in the coming weeks for approval.
With these new tax reforms, Nigeria’s government hopes to empower small businesses, drive job creation, and stimulate economic growth across the country.
