The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, announced that the federal government will implement a 15% Value Added Tax (VAT) on luxury goods, effective immediately.
During an investor meeting at the ongoing IMF/World Bank Annual Meetings in Washington D.C., Edun explained that a bill currently under consideration in the National Assembly aims to gradually increase VAT for affluent Nigerians while ensuring that essential goods for low-income citizens remain exempt or subject to a zero rate.
Edun emphasized, “The commitment of President Bola Tinubu is to protect the poorest and most vulnerable while implementing necessary reforms.” He assured that a detailed list of essential goods eligible for zero VAT will be released soon.
The minister also expressed optimism regarding Nigeria's oil sector, noting improvements in security and new investments from companies like Total and ExxonMobil, which are expected to enhance oil production and foreign exchange inflows.
Regarding subsidy reforms, Edun stated that the complete removal of fuel subsidies became effective in September 2024.
He highlighted that the economic impact of these savings will become more pronounced over time.
In response to questions about Nigeria's financial strategy, Edun confirmed that the government is proceeding with issuing domestic dollar bonds, despite IMF advice against such measures.
