NEWS
Tinubu Announces 0% VAT on Rent, Food, Education, Healthcare, and Public Transport

Nigeria’s President Bola Tinubu has declared a 0% VAT rate on essential goods and services.
This means that rents, public transportation, and renewable energy will be completely exempt from Value Added Tax (VAT).
In his statement marking his second year in office, the President explained that this initiative aims to ease the financial burden on households. Essential items like food, education, and healthcare will also now attract zero VAT.
He said:
“One of our administration’s most significant achievements is the bold tax reform agenda that is already delivering results. By the end of 2024, our tax-to-GDP ratio increased from 10% to over 13.5%—a remarkable rise within just one year. This was no accident but the outcome of deliberate improvements in tax administration and policies designed to make the system fairer, more efficient, and growth-oriented.
We are eliminating multiple taxation to help small businesses grow and formalize. Our tax reforms protect low-income households and support workers by increasing their disposable income. Essential goods and services such as food, education, and healthcare will now carry 0% VAT. Additionally, rent, public transportation, and renewable energy will be fully exempted to further reduce household expenses.
We are ending wasteful, opaque tax waivers and instead introducing targeted, transparent incentives for high-impact sectors like manufacturing, technology, and agriculture. These reforms focus not just on revenue but also on driving inclusive economic growth.
Special attention is on empowering youth through a friendlier tax environment for digital jobs and remote work. Export incentives will help Nigerian businesses compete globally, while the National Single Window project streamlines trade and boosts Nigeria’s competitiveness.
To ensure fairness and accountability, we are establishing a Tax Ombudsman—an independent body that will protect vulnerable taxpayers and support small businesses.
Most importantly, we are laying the foundation for a sustainable future with a new national fiscal policy focused on fair taxation, responsible borrowing, and disciplined spending.
These reforms aim to reduce living costs, promote economic justice, and build a business-friendly economy that attracts investment and benefits all Nigerians. Together, we are creating a system where prosperity is shared and no one is left behind.”
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