Federal Government, through FIRS, has introduced reforms to reduce the financial burden on MSMEs to drive growth, innovation.
Executive chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji made this commitment through his special adviser, Collins Omokaro, at the inaugural MSME Finance Awards.
Adedeji highlighted that the government is creating an enabling environment for MSMEs by offering tax relief and exemptions. “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 from collecting value-added tax (VAT),” he said.
These reforms, according to Adedeji, aim to simplify tax compliance, encourage more MSMEs to join the formal economy, and allow businesses to benefit from various tax incentives. He also revealed that FIRS is considering proposals to raise the threshold for tax exemptions, potentially including more businesses in these benefits.
Also Read:
Taraba lawmaker Makes Case for deplorable state of Gashaka Gumti National Park
The MSME Finance Awards showcased the pivotal role MSMEs play in Nigeria’s economy.
CEO of Nairametrics, Ugochukwu Obi-Chukwu emphasised the sector’s importance, stating that, “MSMEs are the backbone of the Nigerian economy, employing over 80% of the workforce and driving innovation across various sectors. It is crucial that we continue to support this sector through policies, incentives, and collaboration between the private and public sectors.”
Several organisations were honoured for their contributions to the MSME sector. Access Bank was awarded MSME Bank of the Year for its small business financial services, while Moniepoint won MSME Microfinance Bank of the Year for its innovative solutions in microfinance.
E-Tranzact was recognized for excellence in payment security, data protection, and fraud prevention, and Mastercard received the award for Best in MSME Financial Inclusion for expanding access to financial services for small businesses.
CEO of The Economic Forum Series, Jude Ndu remarked that MSMEs are vital drivers of the economy. He stressed the importance of partnerships in providing financial support, mentorship, and capacity building to help MSMEs thrive.
Senior Special Assistant to the President on Job Creation and MSMEs, Temitola Adekunle-Johnson also spoke at the event, noting that MSMEs are increasingly leveraging digital platforms like WhatsApp, Instagram, and YouTube to expand their businesses and boost revenue.