President Bola Tinubu has announced that rent, public transportation, and renewable energy will now be fully exempt from Value Added Tax (VAT) as part of wide-ranging tax reforms aimed at reducing the financial burden on Nigerian households.
In his second anniversary address, the President said the move is part of efforts to ease the cost of living and promote inclusive economic growth. He also revealed that essential services—including food, education, and healthcare—will now attract 0% VAT.
One of the most impactful achievements of our administration is the bold tax reform agenda already yielding tangible results, Tinubu said.
He noted that Nigeria’s tax-to-GDP ratio has risen from 10% to over 13.5% within a year—an improvement he attributed to deliberate efforts to make the tax system fairer, more efficient, and growth-oriented.
Relief for Households and Small Businesses
Tinubu emphasized that the reforms are designed to eliminate multiple taxation, making it easier for small businesses to thrive and join the formal economy.
These reforms will protect low-income households, support workers, and expand disposable income, he said. By exempting rent, public transport, and renewable energy from VAT, we are reducing household costs even further.
Targeted Incentives, Not Wasteful Waivers
The President stressed that his administration is ending the era of opaque and wasteful tax waivers, replacing them with targeted and transparent incentives for key sectors such as manufacturing, agriculture, and technology.
He also highlighted reforms to empower the youth through a more favorable tax environment for digital jobs and remote work, while export incentives are being introduced to make Nigerian businesses more globally competitive.
Building a Transparent and Accountable System
To promote fairness and accountability, the government will establish a Tax Ombudsman, an independent body tasked with protecting vulnerable taxpayers and ensuring small businesses are treated fairly.
We are laying the foundation for a more sustainable future by introducing a new national fiscal policy, Tinubu said. This framework will guide us in pursuing fair taxation, responsible borrowing, and disciplined spending.
Vision for Inclusive Growth
The President reaffirmed that these tax reforms are about more than revenue—they are aimed at stimulating inclusive economic growth, attracting investment, and ensuring that prosperity is shared across all segments of society.
Together, we are creating a system where no one is left behind, he concluded.