Log in or register
Share on LinkedInShare on LinkedIn

ARTICLE · 28 NOVEMBER 2019

Value Added Tax: Legislative Framework And The Authority To Amend The Chargeable Rate

AELEX
AELEX
Contributor
Explore more from AELEX

In a bid to shore up its revenue base to finance the 2020 budget, the executive arm of the Federal Government of Nigeria has expressed its intention to increase the chargeable rate of value added tax from 5 per cent to 7.5 per cent.

NigeriaTax
Ibifubara Berenibara
Ibifubara Berenibara
Author LinkedIn connections

INTRODUCTION

In a bid to shore up its revenue base to finance the 2020 budget, the executive arm of the Federal Government of Nigeria has expressed its intention to increase the chargeable rate of value added tax from 5 per cent to 7.5 per cent. The government's intention was unveiled on 11 September 2019, when after its Federal Executive Council meeting, it disclosed that the chargeable rate of Value Added Tax ("VAT") shall be increased by 50 per cent, effective 2020. Later, on 8 October 2019, while presenting the Fiscal Allocation Bill to a joint session of the National Assembly, the President of Nigeria, Muhammadu Buhari, hinted that the 2020 budget will be partly funded by the 7.5 per cent VAT.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

Nigeria Tax Reforms For Non-Residents: Expatriate & Foreign Company Guide

Nigeria's 2025 Tax Reform Acts introduce sweeping changes for non-residents, foreign investors, and expatriates operating in or deriving income from Nigeria. From expanded Permanent Establishment rules and Significant Economic Presence thresholds to mandatory VAT registration for offshore suppliers and Capital Gains Tax on indirect share transfers, the new framework fundamentally reshapes cross-border tax obligations. Understanding these provisions and taking proactive compliance steps is now essential for
NigeriaTax
Adeola Oyinlade & Co
Adeola Oyinlade & Co
Article

Examination Of The Value Added Tax Provisions Under The Nigeria Tax Act, 2025

On June 26, 2025, President Bola Ahmed Tinubu signed four transformative tax bills into law, fundamentally reshaping Nigeria's taxation landscape. The Nigeria Tax Act, 2025 repealed principal taxation legislations, introducing a comprehensive new framework that affects companies and taxpayers across the country. What are the key provisions of this new tax regime and how will it impact businesses operating in Nigeria?
NigeriaTax
Streamsowers & Köhn
Streamsowers & Köhn
Article

Nigeria's 15% Minimum Effective Tax Rate (Metr): Analysis For Multinational Enterprises And Large Domestic Companies

A major innovation introduced by the Nigeria Tax Act (the “NTA”) is the 15% Minimum Effective Tax Rate (the “METR”), which represents a fundamental shift in Nigeria’s corporate tax framework. The METR is intended to guarantee that companies of significant economic scale bear a minimum tax burden, notwithstanding the availability of incentives, exemptions, or reliefs.
NigeriaTax
AELEX
AELEX
Article

Innovative Trade Finance: Promoting Inclusivity, Resilience And Interoperability Through Digitalisation

The increasing digitalisation of global commerce fundamentally transforms how Trade Finance is deployed and accessed by businesses. The International Chamber of Commerce (“the ICC”) defines Trade Finance as the invisible bridge that makes global trade flow. Trade Finance connects entities across continents, mitigates payment risks and is enzymatic to market progression and economic stability.
NigeriaInternational Law
AELEX
AELEX
Article

Data Localisation In Nigeria: Separating Myth From Reality

Artificial intelligence, cloud computing, cybersecurity and digital sovereignty have fundamentally changed the way governments think about data. Around the world, policymakers are increasingly asking where data should be stored, who should have access to it and under what circumstances it should leave national borders. These questions are no longer confined to technology policy, they have become matters of economic policy, national security, industrial development and international trade.
NigeriaTechnology
AELEX
AELEX