News
NASME Advocates 5-Year Tax Amnesty for MSMEs
Federal government has been urged to grant five-year tax amnesty to the Micro, Small & Medium Enterprises (MSMEs) in the country as a means to galvanise them, especially into aligning the small businesses with the formal sector tax related matters.
The Nigerian Association of Small and Medium Enterprises (NASME), made the call as part of its advocacy and mediation drives to broker compromise between the government and the MSMEs, especially on taxation.
Meanwhile, the Nigerian Association of Small and Medium Enterprises (NASME), Nigeria in collaboration with Deloitte, with the support of Enhancing Nigerian Advocacy for a Better Business Environment (ENABLE), on Thursday officially released an advocacy paper targeted at proffering a better tax framework for the MSME sector of the Nigerian economy.
According to NASME, statistics shows that Nigeria has currently has over 35 million small business, who account for 90% of job creation, contributing about 50% of the economic growth, regrettably, the sector are heavily taxed and allowed to grapple with multifaceted challenges.
The informal economy or grey economy which is usually regarded as part of the economy that is neither taxed, nor monitored by any form of government, the experts said, deserves to be treated fairly and included into the activities of the formal sector economy.
Speaking during public presentation of Tax Advocacy Paper aimed at MSMEs in Nigeria, a work executed by Deloitte Nigeria on behalf of NASME, Fatai Folarin, chief executive officer of Deloitte Nigeria, said in spite of government’s efforts and the clout garnered by MSMEs, MSMEs have not performed creditably well and hence have not played the expected vital and vibrant role in the economic growth and development of Nigeria.
He said the report findings show an existing or perceived disconnect between policy intent and the realities of MSMEs.
“The need to bridge the gap between policy intent and MSME reality has necessitated this position paper. The drivers for this position paper are: Encouraging interaction and adoption of a concerted approach to issue of strategic importance to the development of MSMEs in Nigeria; Establishing a frame work that ensures effective realization of government objectives and targets for MSMEs; and Creating an active platform for policy advocacy on issues affecting MSMEs in Nigeria”.
The Tax Advocacy paper focuses on key objectives as the challenges faced by MSMEs in Nigeria; bridging tax and regulatory gaps in relation to MSMEs – Our Recommendations and benefits to the government.
Also speaking, Oluseye Arowolo, partner, Tax & Regulatory at Deloitte Nigeria, said that the executive summary of the paper, it has clearer, “apart from where the policy defined MSMEs, the policy does not specifically address nor differentiate the needs of each segment, which is principally the disconnect that needs to be addressed”.
He said, “Each category of MSME has its own peculiar characteristics and problems which require targeted policies to address them. If you look overview of MSMEs in Nigeria, the country’s economy is largely driven by MSMEs with 96% of Nigerian businesses falling under this category; The MSME sector accounted for 84.02% of the total labour force in Nigeria in 2013; MSMEs contribution to the Nation’s Gross Domestic Product in nominal terms stood at 48.47% in 2013; MSMEs contribution to export stood at 7.27% in 2013 and MSMEs, the world over are said to generate about 90% of employment in the private sector. So, we started work on this position paper about two years ago. Since then so many things have changed, however, there are current events in the country that show the releasing of this position paper is apt and should be adopted by the Government to cater for this segment of the economy,” Arowolo said.
The document jointly presented by NASME, Deloitte and ENABLE identifies that currently, only about 27.7% of registered businesses in Nigeria pay taxes out of the recorded number of 450,000; MSMEs account for a significant portion of the remaining 72.3%, hence “an improved tax and regulatory framework will result into widened tax net to accommodate these MSMEs as a result of the VDP and simplified tax registration process”.
“If the Total tax revenue generated by the revenue authorities in 2015 was N3.7bn; The target tax collection in 2015 was N4.6bn, government granting MSME requests will encourage the level of compliance and consequently, more revenue generation. For instance, unemployment rate and GDP in the 1st quarter of 2016 are recorded at 12.1% and -13.7% respectively. Enactment of preferential tax rules and other tax incentives requested will boost investment and encourage more players in the sector. Consequently, increased employment, more goods being produced for export and increased GDP,” he said.
The Partner, Tax & Regulatory at Deloitte Nigeria added that the paper recommends for the Government to have special MSME tax regime “where MSMEs will not be assessed under the provision of either PITA or CITA, but on a new tax and regulatory framework dedicated to MSME in clear and definite terms”.
To this end, Prince ‘Degun Agboade, president/chairman of Council of NASME thanked Deloitte for executing the work seamlessly, adding that the findings are critical to the members.
According to Agboade, MSMEs in Nigeria today are faced with challenges ranging from “Government’s perceived lack of sensitivity; Rigid and stringent requirements for start-up business; Over-regulation; Insufficient access to funds/finance and lack of awareness; Inefficiency in the administration of government’s incentives; Multiple and high taxes, among others.
He said, “In a situation you present you bankers with collateral worth N200million and they say you can only borrow N12million, whereas N50million was approved for you, does it augur well for such manufacturers? Manufacturers are going through turbulent times especially in sourcing for funds, and tax system is not harmonised. We want the Government to look into this. So, the call for tax amnesty is justified, because it is going to inject life into the MSMEs and help the government to increase tax earnings”.
Nodding in agreement, Ladi Jemi-Alade, zonal vice president, South-West at NASME said reiterated that “MSMEs are able to manufacture products up to international standards for export which will boost foreign trade, and increased innovation and technology as MSMEs tend to be major drivers of innovation while achievement of wider socio-economic goals such as poverty alleviation”.
“That is why we are saying 5-year tax amnesty for the MSMEs will bring about a programme for voluntary disclosure of records. For instance, most companies are indebted to Corporate Affairs Commission (CAC) and the FIRS, because the penalties are stringent. So, companies need help. They need to be granted amnesty to voluntarily disclose their records and the inequalities in the tax system must be addressed”.
He said that stakeholders’ view is that the current disconnect in policy and the reality of MSMEs must be eliminated through appropriate combination of options, expressing their desire “to assist government to appreciate expectations from the MSME sector has necessitated the preparation of this sector-wide position paper. Stakeholders within the MSME sector through NASME are prepared to engage and dialogue further with Government at all levels”.
Also, Kevin Conroy, team leader, Enhancing Nigerian Advocacy for a Better Business Environment (ENABLE), expressed confidence that if implemented, provisions in the paper will help to unleash the potential of MSME for the benefit of Nigeria’s economy.
He said that is has become imperative for government to revisit its approach to the challenges of the MSME sector, particularly by reducing the tax burdens on small businesses.
Guinness Nigeria has launched a nationwide National Consumer Promotion (NCP) tagged ‘Open For More’. This is a consumer rewards initiative that will see more than ₦400 million in cash and prizes won by consumers across the country.
The promotion, which runs nationwide, offers consumers the opportunity to win ₦1 million every day, ₦100,000 cash rewards for 1,000 winners, and a brand-new Toyota Land Cruiser Prado as the grand prize. The campaign is designed to reward loyal consumers while creating more opportunities for everyday Nigerians to celebrate life’s meaningful moments.
To participate, consumers are required to purchase specially marked bottles of Guinness Foreign Extra Stout or Guinness Smooth, check for the unique code beneath the crown cork, and enter the code at www.guinnessng.com/1759 for a chance to win.
Speaking on the launch, Ramanathan Solayappan, Marketing and Innovations Director, Guinness Nigeria, said the promotion reflects the brand’s longstanding relationship with consumers and its commitment to creating memorable experiences beyond the product itself.
“Nigerians have made Guinness part of their celebrations, milestones, and everyday moments for over seven decades. The ‘Open For More’ promotion is our way of rewarding that loyalty by giving consumers genuine opportunities to win prizes that can make a meaningful difference in their lives.”
Solayappan added that the promotion was deliberately designed to make participation simple and accessible to consumers across the country.
“We believe, at Guinness, that there is always room for more possibilities, more progress, and more reasons to celebrate. Through this campaign, we are inviting consumers and beloved Nigerians over the age of 18 years to take part in an experience that goes beyond enjoying a Guinness. Every eligible purchase could open the door to something more.”
Beyond rewarding consumers, the promotion comes at a time when many Nigerians are placing greater value on opportunities that offer tangible returns. By putting more than ₦400 million in cash and prizes directly into the hands of consumers, Guinness Nigeria is creating a campaign that celebrates loyalty and delivers meaningful rewards that can support personal aspirations, family needs, and everyday goals.
As part of the campaign, winners will emerge weekly throughout the promotion period, with regular winner announcements and prize presentations aimed at ensuring transparency and public confidence in the process.
The Open For More National Consumer Promotion strengthens Guinness Nigeria’s commitment to rewarding consumers while creating excitement around the brand through meaningful and impactful experiences. Consumers are encouraged to look out for specially marked promotional packs and follow Guinness Nigeria’s official communication channels for updates, winner announcements, and further information on participation mechanics.
Bashir Adeniyi, Comptroller-General of the Nigeria Customs Service (NCS), has disclosed that the value of Import Duty Exemption Certificate (IDEC) approvals granted by the Federal Government rose to about N34 trillion in 2025.
Adeniyi made the disclosure on Monday during an investigative hearing of the Senate Committee on Finance in Abuja.
He said the import duty exemptions had significantly affected the service’s revenue generation, although many of the waivers were introduced to support critical national priorities.
According to him, about 60 per cent of the approved waivers were granted for the importation of military hardware in response to the country’s security challenges.
He said other beneficiaries included importers of compressed natural gas (CNG), electric and hybrid vehicles, healthcare equipment and medical supplies, industrial machinery, manufacturing inputs and food intervention programmes.
“IDEC approvals reached about N34 trillion in 2025, about 60 per cent of which was rightly granted for military hardware procurements due to Nigeria’s prevailing security challenges,” Adeniyi said.
The Comptroller-General noted that the introduction of the IDEC scheme in March 2020 had remained one of the major fiscal policies affecting Customs revenue.
He said the service would have generated significantly higher revenue over the years if not for government fiscal measures and other external factors that reduced its revenue base.
Adeniyi, however, maintained that fiscal policy should not be evaluated solely on the basis of revenue generation.
He said government interventions through duty waivers were intended to stimulate economic growth, improve healthcare delivery, encourage industrial production and address national security concerns.
He urged the Federal Government to strengthen monitoring mechanisms to ensure that beneficiaries of import duty waivers achieved the intended objectives, including reducing prices, increasing production and improving access to essential goods and services.
The Customs boss also disclosed that the service generated N7.28 trillion in revenue in 2025.
He added that out of the N11.04 trillion revenue target for 2026, the service had realised N4.5 trillion as of June 30.
Adeniyi expressed optimism that the service would continue implementing measures aimed at improving revenue collection while supporting government fiscal policies.
DataPro Rating Agency has upgraded the long-term credit rating of Dangote Cement Plc to AA+ from AA, citing the company’s strong financial performance, market leadership and ability to meet its financial obligations despite Nigeria’s challenging economic environment.
In its latest rating report, the technology-driven credit rating agency also affirmed Dangote Cement’s short-term rating at A1, with a Stable Outlook. The ratings are valid until June 16, 2027.
DataPro said the upgrade reflects the cement maker’s sustained financial strength, resilient operating performance and dominant position in Nigeria and across Africa.
According to the agency, the assessment followed a comprehensive review of the company’s capital base, earnings, liquidity, corporate governance, regulatory compliance and the sustainability of its financial performance over the medium to long term.
It noted that Dangote Cement’s strong brand, leading market share, solid earnings, robust asset base and experienced management continue to strengthen its ability to meet financial commitments on time.
The agency also highlighted the company’s outstanding financial performance in 2025.
According to the report, Dangote Cement posted N4.31 trillion in revenue during the year, representing a 20 per cent increase from the previous year. Profit before tax more than doubled, rising 109 per cent to N1.53 trillion, driven by higher sales, improved operating efficiency, lower finance costs and a stronger capital structure.
DataPro said the AA+ long-term rating indicates low credit risk and reflects excellent financial strength, business profile and operating performance relative to its rating benchmarks.
It added that the A1 short-term rating signifies good credit quality and shows that the company has a strong capacity to meet its short-term financial obligations as they fall due.
The rating agency, however, noted that the credit rating has a maximum shelf life of 12 calendar months in line with international best practice and should be used only as a reference, not as an offer to trade in securities or as a substitute for investors’ independent judgement.
Next Currency Crisis May Turn $300Bn in Stablecoins into National Currencies
NIHSA Warns States of Possible Flood within Seven Days
FG to Raise N1.2 Trillion via Fresh Bond Offer – DMO
Gigbanc Nigerian Fintech Startup Closes Shop after 3 Years
Mbunabo, Nigerian Filmmaker Accuses Ghana TV Stations of Pirating Nollywood Films
NRC, Ponzi Scheme Collapses Resulting Loss of Billions of Naira
Nigeria Launches FreeTV Nationwide
NASENI Moves to Digitize CCB’s 5m Assets Declaration and Operations
Lebara Nigeria Launches Lebara Play, Africa’s First Telecom-Owned Micro-Drama Platform
CANAL+ Partners Samsung to Pre-Load DStv Stream on New Samsung TVs In Nigeria, Other African Countries
News3 days agoXora Finance, Fintech Firm Refuses to Hire Nigerians over Alleged Dishonesty
Telecom3 days agoNCC Advances Dig Once Policy, Engages Stakeholders on Cost-Based Framework for Duct Sharing
Telecom3 days agoNCC to Keynote Telecom Sector Sustainability Forum 7.0
News3 days agoHow Ponzi Scheme Victims can Seek Legal Remedies — Lawyers
General News3 days agoFG Secures Fresh $208.3m World Bank Loan for Cash Transfer
Telecom2 days agoMTN Nigeria Slashes Cost of Broadband Internet Router, Unwraps New Data Bundles for Low-Budget Users
News3 days agoPalmPay Nigeria Appoints Samuel Oluyemi as Chief Operating Officer
E-Financial2 days agoNigerians Accumulate $59Bn in Cryptocurrency Assets —FDC