By using this site, you agree to the Privacy Policy and Terms & Conditions.
Accept
Okay.ngOkay.ngOkay.ng
Font ResizerAa
  • News
    • Politics
  • Entertainment
  • Business & Economy
  • Sport
  • Tech
Reading: Nigeria’s Revenue at Risk: Experts Warn Against VAT Rate Freeze Amid Reform
Share
Font ResizerAa
Okay.ngOkay.ng
  • News
  • Entertainment
  • Business & Economy
  • Sport
  • Tech
Search
  • News
    • Politics
  • Entertainment
  • Business & Economy
  • Sport
  • Tech
Follow US
  • About Okay.ng
  • Advertising on Okay.ng
  • Contact Okay.ng
  • Careers
  • Meet the Team behind Okay.ng
  • Ownership and Funding of Okay.ng
  • Editorial Principles at Okay.ng
© OKN MEDIA PUBLISHING 2022 - All rights reserved
News

Nigeria’s Revenue at Risk: Experts Warn Against VAT Rate Freeze Amid Reform

Genesis Obong
By Genesis Obong
Published: April 2, 2025
Share
4 Min Read
NESG Economic Strategy
SHARE

The Nigerian Economic Summit Group (NESG) has issued a stark warning: the Federal Government’s revenue streams could face significant shortfalls if it fails to adjust the Value Added Tax (VAT) rate as part of its ongoing tax reform initiatives. During a recent interactive media session in Abuja, NESG Chief Executive Officer, Dr. Tayo Aduloju, emphasized the delicate balance required between simplifying the tax system and ensuring adequate revenue generation.

“Without those rate hikes, it means that the government might lose some revenue,” Dr. Aduloju stated, highlighting the potential consequences of maintaining the current VAT rate. The ongoing fiscal and tax reform efforts are aimed at streamlining the complex Nigerian tax landscape while simultaneously supporting the government’s ambitious budgetary goals. However, as Dr. Aduloju pointed out, simply reducing the number of taxes without a corresponding adjustment to the VAT rate could weaken the government’s financial foundation.

“If we win on the reform of the VAT system, and even if we postpone the rate hike by three years, it will still be a win. That will immediately show efficiency, and we can attract more companies to invest in Nigeria,” he explained. This sentiment underscores the need for a strategic approach that fosters investor confidence while safeguarding revenue stability.

However, the proposed VAT rate increase faces strong opposition. The Trade Union Congress of Nigeria and the Nigeria Governors’ Forum have voiced concerns that such a move could exacerbate the already severe economic hardships faced by Nigerians. Similarly, the House of Representatives recently rejected a staggered increase to 15 percent by 2030, opting to retain the current 7.5 percent VAT rate.

- Advertisement -

Read Also: NESG Predicts Inflation Decline, Naira to Stabilise at N1,300/$ in 2025

The debate highlights a critical juncture for Nigeria’s economic policy. Beyond the VAT rate, Dr. Aduloju stressed the importance of unlocking investment opportunities to bolster revenue. He noted that Nigeria possesses substantial assets capable of attracting foreign direct investment, provided that legal, regulatory, and policy bottlenecks are addressed. “I’ve seen so many assets that this country has, that if we just clear the legal, regulatory, and policy bottlenecks, we can attract foreign direct investment,” he said.

Furthermore, he called for enhanced coordination between monetary and fiscal policies to combat inflation, particularly those driven by high energy costs. Energy security, he argued, remains a pivotal factor influencing inflation, with inefficiencies in the downstream petroleum sector contributing to persistent price hikes. “Energy security is a very big part of inflation,” Dr. Aduloju explained.

The NESG’s warning comes at a crucial time, as Nigeria navigates complex economic challenges. The delicate balancing act between tax reform and revenue generation will undoubtedly shape the nation’s economic trajectory in the years to come. The question remains: can Nigeria strike the right balance to ensure both economic stability and growth?

- Advertisement -

Stay Updated on the Go with Our Latest News—Join Our WhatsApp Channel Now!
TAGGED:Fiscal PolicyNigeria economyRevenueTax ReformVAT
Share This Article
Facebook Whatsapp Whatsapp Telegram Email Copy Link Print
ByGenesis Obong
Follow:
Genesis Obong is a Journalist with relevant experience in Business, Finance and Economic matters in Nigeria and across the West African space.
Previous Article Edo Election: Tribunal Rules in Favor of Governor Okpebholo, APC
Next Article Forex Reserve Foreign Reserves Surge to Three-Year High, CBN Reports

Connect with Okay on Social

FacebookLike
XFollow
InstagramFollow
TelegramFollow

Dollar/Naira Rates

Dollar to Naira Exchange Rate

Okay.ng Logo
Buy Rate ₦1,605.00
Sell Rate ₦1,620.00

Last updated: 3 weeks ago (June 3, 2025 2:33 pm)

Displayed rates are for informational purposes only and are subject to change.

USD/NGN Converter

- Advertisement -
- Advertisement -
Ad imageAd image
- Advertisement -
Ad imageAd image

Recent Posts

Taiwo Oyedele
FG Sets Ambitious Target to Raise Tax-to-GDP Ratio to 18% Within Three Years
Economy
Suspected IPOB/ESN Landmine Explosion Claims Six Lives in Imo Market
News
Political Rift Between Wike and Fubara Resolved After Presidential Mediation
News
NNPC
Senate Issues Ultimatum as NNPCL Fails to Appear Over N210 Trillion Audit Discrepancies
Energy & Oil
Federal Revenue Agencies to Undergo Restructuring as President Tinubu Enacts Major Tax Reform Legislation
News Top stories
- Advertisement -
Ad imageAd image

You May Also Like

NewsTop stories

BREAKING: President Tinubu Endorses Four Major Tax Reform Bills

Oluwadara Akingbohungbe
Oluwadara Akingbohungbe
June 26, 2025
Lagos State Government
News

Lagos State Government Refutes Peter Obi’s Allegation of Property Demolition, Orders Probe

Oluwadara Akingbohungbe
Oluwadara Akingbohungbe
June 26, 2025
News

Oyo State Governor Seyi Makinde Renames Polytechnic Ibadan in Honour of Late Dr. Omololu Olunloyo

Oluwadara Akingbohungbe
Oluwadara Akingbohungbe
June 26, 2025
Okay.ngOkay.ng
Follow US
© OKN MEDIA PUBLISHING 2025 - All rights reserved
  • About Okay.ng
  • Advertising on Okay.ng
  • Contact Okay.ng
  • Careers
  • Meet the Team behind Okay.ng
  • Ownership and Funding of Okay.ng
  • Editorial Principles at Okay.ng
adbanner
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?