Abuja, May 29, 2025 – The federal government has removed Value Added Tax (VAT) on essential goods and services.
President Bola Tinubu announced the gesture on Thursday in a statement to mark the second anniversary of his administration.
He particularly said goods like foods, education and healthcare would benefit from the removal of VAT.
Tinubu said the removal of VAT on essential goods and services is a fallout from the current tax reforms of his administration intended to protect low-income households and support workers by expanding their disposable income
He said: We are eliminating the burden of multiple taxation, making it easier for small businesses to grow and join the formal economy.
“The tax reforms will protect low-income households and support workers by expanding their disposable income.
“Essential goods and services such as food, education, and healthcare will now attract 0% VAT. Rent, public transportation, and renewable energy will be fully exempted from VAT to reduce household costs further.
“We are ending the era of wasteful and opaque tax waivers. Instead, we have introduced targeted and transparent incentives supporting high-impact manufacturing, technology, and agriculture sectors.
“These reforms are not just about revenue, but about stimulating inclusive economic growth.”
