Federal Government Reaffirms Support for MSMEs with Tax Incentives

The Federal Government has reiterated its commitment to supporting micro, small, and medium enterprises (MSMEs) through tax incentives aimed at fostering growth and sustainability in the sector.

According to Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service (FIRS), the government is focused on creating an environment that enables MSMEs by providing tax relief and exemptions. “The Federal Government, through FIRS, has introduced reforms to reduce the financial burden on MSMEs,” he stated.

Adedeji, represented by his special adviser, Collins Omokaro, at the inaugural MSME Finance Awards, explained that small businesses are exempt from companies income tax and value-added tax.

The FIRS boss noted that the government’s tax policies are designed to support MSMEs by reducing tax compliance complexity, encouraging greater participation in the formal economy, and ensuring more businesses benefit from tax incentives.

Ugochukwu Obi-Chukwu, CEO of Nairametrics, emphasized the crucial role MSMEs play in the Nigerian economy, employing over 80% of the workforce and driving innovation across sectors.

Several organizations were recognized for their contributions to the MSME sector during the awards ceremony, including Access Bank, Moniepoint, E-Tranzact, and Mastercard.

Temitola Adekunle-Johnson, Senior Special Assistant to the President on job creation and MSME, noted that MSMEs are leveraging digital platforms to expand their reach and drive revenue, and strategic partnerships can provide necessary financial support, mentorship, and capacity building.