FG Reaffirms Commitment To MSMEs Growth with Expanded Tax Incentives

The federal government has reaffirmed its dedication to supporting the growth and sustainability of micro, small, and medium enterprises (MSMEs) through various tax incentives aimed at easing financial pressures on these businesses.

This announcement 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.

Dr. Adedeji, represented by his special adviser, Mr. Collins Omokaro, stressed that the government is focused on creating a conducive environment for 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 corporate income tax and from the obligation to collect value-added tax,” he explained.

These tax reforms are part of a broader strategy to encourage compliance, promote formalization of businesses, and maximise the benefits derived from government incentives.

Additionally, Dr. Adedeji revealed that FIRS is considering further proposals to increase the tax exemption threshold, allowing more MSMEs to benefit from tax relief. This move is expected to bring even more businesses under the umbrella of government support, further boosting the sector.

The MSME Finance Awards highlighted the critical role of MSMEs in Nigeria’s economy, with Ugochukwu Obi-Chukwu, Chief Executive Officer (CEO) of Nairametrics, noting their significance. “MSMEs are the backbone of the Nigerian economy, employing over 80 percent of the workforce and driving innovation across various sectors,” he said. Mr. Obi-Chukwu also stressed the need for continued policy support and collaboration between the private and public sectors to ensure sustainable growth for MSMEs.

At the awards, several organisations were recognised for their outstanding contributions to the MSME sector. Access Bank was awarded MSME Bank of the Year for its financial services tailored to small businesses, while Moniepoint received the MSME Microfinance Bank of the Year award for its innovative microfinance solutions. E-Tranzact was celebrated for excellence in payment security, data protection, and fraud prevention, and Mastercard was honoured for Best in MSME Financial Inclusion, recognising its efforts to expand access to financial services for small enterprises.

Mr. Jude Ndu, CEO of The Economic Forum Series, highlighted the essential role MSMEs play as drivers of economic growth and emphasized the importance of partnerships to address financial gaps, provide mentorship, and build capacity in the sector.

In her remarks, Mrs. Temitola Adekunle-Johnson, Senior Special Assistant to the President on Job Creation and MSMEs, noted that many small businesses are successfully leveraging digital platforms like WhatsApp, Instagram, and YouTube to expand their market reach and increase revenue.

With ongoing government support and private sector innovation, Nigeria’s MSMEs are positioned for continued growth and a more sustainable future.