FG pledges continued support for MSMEs with tax incentives

The Federal Government has reaffirmed its commitment to boosting micro, small, and medium enterprises (MSMEs) through tax incentives designed to promote growth and sustainability.

This was disclosed by the Executive Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, represented by his special adviser, Collins Omokaro, at the inaugural MSME Finance Awards, organized by The Economic Forum Series in collaboration with DigiComm Enterprise.

Speaking at the event, Omokaro highlighted the government’s focus on providing tax relief to ease the financial burden on MSMEs. “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 are also exempt from the obligation to collect value-added tax (VAT),” Adedeji said.

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He also revealed that the government is working to simplify tax compliance and considering raising the threshold for tax exemptions, thereby bringing more MSMEs into the formal economy and enabling them to benefit from available incentives.

The MSME Finance Awards, which celebrates achievements in MSME finance, recognized several organisations for their contributions to the sector. Access Bank was honored as “MSME Bank of the Year” for its tailored financial services supporting small businesses.

Jude Ndu, CEO of The Economic Forum Series, stressed the importance of strategic partnerships in empowering MSMEs through financial support, mentorship, and capacity-building programs.

Temitola Adekunle-Johnson, Senior Special Assistant to the President on Job Creation and MSMEs, acknowledged the sector’s increasing use of digital platforms like WhatsApp, Instagram, and YouTube to expand their market reach and grow revenue.

The awards ceremony underscored the critical role of MSMEs in driving Nigeria’s economy and the importance of continued support from both government and private sector stakeholders.