The Federal Government has reiterated its commitment to fostering the growth and sustainability of micro, small, and medium enterprises (MSMEs) through a range of tax incentives aimed at reducing financial pressures on these businesses.
This declaration was made by Dr. Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service (FIRS), during the inaugural MSME Finance Awards organised by The Economic Forum Series.
Represented by his special adviser, Mr. Collins Omokaro, Dr. Adedeji emphasised that the government is working to create a more conducive business environment for MSMEs by providing tax relief and exemptions.
“The federal government, through FIRS, has implemented reforms to ease the financial burden on MSMEs. Small businesses, as defined under the Company Income Tax Act, are exempt from corporate income tax and from the obligation to collect value-added tax (VAT),” he explained.
These reforms are part of a broader government strategy to encourage formalization of businesses, promote tax compliance, and ensure MSMEs can fully benefit from available incentives.
Dr. Adedeji also disclosed that FIRS is considering proposals to increase the tax exemption threshold, enabling more MSMEs to take advantage of the relief measures. This step is expected to bring more small businesses into the fold of government support and further stimulate the sector.
The MSME Finance Awards spotlighted the critical role that MSMEs play in Nigeria’s economy. Mr. Ugochukwu Obi-Chukwu, CEO of Nairametrics, noted their significance, highlighting that MSMEs employ over 80 percent of the workforce and are driving innovation across various sectors. He also emphasised the need for continuous policy support and collaboration between the public and private sectors to ensure sustainable growth for MSMEs.
During the awards ceremony, several institutions were recognised for their outstanding contributions to the sector. Access Bank won the MSME Bank of the Year award for its tailored financial services to small businesses, while Moniepoint received the MSME Microfinance Bank of the Year award for its innovative microfinance solutions. E-Tranzact was lauded for its excellence in payment security, data protection, and fraud prevention, while Mastercard was honoured for Best in MSME Financial Inclusion, in recognition of its efforts to expand access to financial services for small businesses.
Mr. Jude Ndu, CEO of The Economic Forum Series, highlighted the importance of partnerships in addressing financial gaps, providing mentorship, and building capacity for MSMEs.
In her remarks, Mrs. Temitola Adekunle-Johnson, Senior Special Assistant to the President on Job Creation and MSMEs, emphasized how small businesses are leveraging digital platforms like WhatsApp, Instagram, and YouTube to expand their market reach and increase revenues.
With continuous government support and innovation from the private sector, Nigeria’s MSMEs are poised for sustained growth and a brighter future.
