FG plans tax incentives for MSMEs

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

This was disclosed recently by the Executive Chairman of the Federal Inland Revenue Service, Executive Chairman, Zacch Adedeji, who was represented by his special adviser, Collins Omokaro, at the inaugural MSME Finance Awards convened by The Economic Forum Series in partnership with Nairametrics and DigiComm Enterprise.

He explained that the federal government was focused on creating an environment that enabled MSMEs by providing 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 are also exempt from the obligation to collect value-added tax,” the FIRS boss said.

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

He also revealed that FIRS was considering proposals to further raise the threshold for tax exemptions to bring more MSMEs into the fold.

The MSME Finance Awards, which celebrated excellence in MSME finance, underscored the role MSMEs play in the Nigerian economy.

The Chief Executive Officer of Nairametrics, Ugochukwu Obi-Chukwu, said, “MSMEs are the backbone of the Nigerian economy, employing over 80 per cent 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.”

At the event, several organisations were recognised for their contributions to the MSME sector during the awards ceremony. Access Bank was named MSME Bank of the Year for its financial services tailored to small businesses.

Moniepoint emerged as the MSME Microfinance Bank of the Year for its innovative solutions in the microfinance space.

E-Tranzact was recognised as the best in payment security, data protection, and fraud prevention.

Meanwhile, Mastercard won the award for Best in MSME Financial Inclusion, acknowledging its efforts in expanding access to financial services for small businesses.

The CEO of The Economic Forum Series, Jude Ndu, noted that MSMEs are crucial drivers of our economy, and through strategic partnerships, citizens can bridge the gap by providing necessary financial support, mentorship, and capacity building.

In his remarks, the Senior Special Assistant to the President on job creation and MSME; Temitola Adekunle-Johnson, stated that MSMEs were already leveraging digital platforms like WhatsApp, Instagram, and YouTube to expand their reach and drive revenue.