The Federal Government of Nigeria has pledged continued support for micro, small, and medium enterprises (MSMEs) by providing tax incentives aimed at promoting growth and sustainability within the sector.
Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service (FIRS), made this commitment through his special adviser, Collins Omokaro, at the inaugural MSME Finance Awards. The event was organized by The Economic Forum Series, in collaboration with Nairametrics and DigiComm Enterprise.
Adedeji highlighted that the government is creating an enabling environment for MSMEs by offering 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 companies income tax and from collecting value-added tax (VAT),” he said.
These reforms, according to Adedeji, aim to simplify tax compliance, encourage more MSMEs to join the formal economy, and allow businesses to benefit from various tax incentives. He also revealed that FIRS is considering proposals to raise the threshold for tax exemptions, potentially including more businesses in these benefits.
The MSME Finance Awards showcased the pivotal role MSMEs play in Nigeria’s economy. Ugochukwu Obi-Chukwu, CEO of Nairametrics, emphasized the sector’s importance, stating, “MSMEs are the backbone of the Nigerian economy, employing over 80% of the workforce and driving innovation across various sectors. It is crucial that we continue to support this sector through policies, incentives, and collaboration between the private and public sectors.”
Several organizations were honored for their contributions to the MSME sector. Access Bank was awarded MSME Bank of the Year for its small business financial services, while Moniepoint won MSME Microfinance Bank of the Year for its innovative solutions in microfinance. E-Tranzact was recognized for excellence in payment security, data protection, and fraud prevention, and Mastercard received the award for Best in MSME Financial Inclusion for expanding access to financial services for small businesses.
Jude Ndu, CEO of The Economic Forum Series, remarked that MSMEs are vital drivers of the economy. He stressed the importance of partnerships in providing financial support, mentorship, and capacity building to help MSMEs thrive.
Temitola Adekunle-Johnson, Senior Special Assistant to the President on Job Creation and MSMEs, also spoke at the event, noting that MSMEs are increasingly leveraging digital platforms like WhatsApp, Instagram, and YouTube to expand their businesses and boost revenue.
