The Federal Government of Nigeria has reiterated its commitment to helping micro, small, and medium enterprises (MSMEs) grow by offering tax incentives.
This announcement was made by Zacch Adedeji, the Executive Chairman of the Federal Inland Revenue Service (FIRS), at the inaugural MSME Finance Awards.
He explained that the government is focused on creating a supportive environment for small businesses by providing tax relief and exemptions.
For example, small businesses are exempt from corporate income tax and do not need to collect value-added tax.
The FIRS is also looking into raising the threshold for tax exemptions, which would allow even more MSMEs to benefit.
The awards event highlighted the importance of MSMEs in Nigeria’s economy, as they employ over 80% of the workforce and drive innovation.
Ugochukwu Obi-Chukwu, CEO of Nairametrics, emphasized the need for ongoing support through policies and partnerships between the private and public sectors.
During the awards, several organizations were recognized for their contributions to the MSME sector. Access Bank was named MSME Bank of the Year for its tailored financial services, while Moniepoint won for its innovative microfinance solutions.
Other winners included E-Tranzact for payment security and Mastercard for its efforts in financial inclusion for small businesses.
Senior Special Assistant to the President, Temitola Adekunle-Johnson, noted that many MSMEs are successfully using digital platforms to grow their businesses.