Taiwo Oyedele, chairman of the Presidential Fiscal Policy and Tax Reforms Committee, has announced proposed tax exemptions aimed at supporting small businesses in Nigeria. In an interview on Channels Television, Oyedele revealed that the committee has recommended raising the annual turnover threshold for tax exemptions from N25 million to N50 million.
Under this new proposal, businesses with an annual turnover of N50 million or less would be exempt from key taxes, including value-added tax (VAT), withholding tax, and company income tax (CIT). This change is expected to benefit approximately 97 percent of small businesses in Nigeria, offering significant relief to entrepreneurs facing economic challenges.
Oyedele also mentioned that these reforms are part of a broader fiscal strategy that includes incentives for private-sector employers. Employers who increase their workforce beyond previous years would be eligible for additional tax relief, a measure intended to stimulate job creation and reduce unemployment. The proposal also includes relief for employers who provide transportation benefits to their employees.
These proposals are expected to be presented to the National Assembly in the coming weeks as part of the government’s ongoing efforts to reform the fiscal and tax landscape in Nigeria.
