Business
FG Proposes Tax Incentives to Boost MSMEs
The Federal Government has reiterated its commitment to enhancing the growth and sustainability of micro, small, and medium enterprises (MSMEs) through targeted tax incentives.
Zacch Adedeji, the Executive Chairman of the Federal Inland Revenue Service (FIRS), shared this during the inaugural MSME Finance Awards, hosted by The Economic Forum Series in partnership with Nairametrics and DigiComm Enterprise. Adedeji, represented by his special adviser Collins Omokaro, emphasized that the government is focused on creating a business-friendly environment through tax relief measures.
“The Federal Government, through FIRS, has implemented reforms to ease the financial strain on MSMEs. Small businesses, as defined by the Company Income Tax Act, are exempt from company income tax and the requirement to collect value-added tax (VAT),” Adedeji explained.
He added that these tax policies aim to simplify compliance, encourage formal economic participation, and extend the benefits of tax incentives to a broader range of businesses. Additionally, FIRS is considering raising the threshold for tax exemptions, allowing more MSMEs to qualify for these benefits.
The MSME Finance Awards, which recognized excellence in MSME financial services, highlighted the crucial role MSMEs play in the Nigerian economy.
Ugochukwu Obi-Chukwu, CEO of Nairametrics, acknowledged the sector’s importance, stating, “MSMEs form the backbone of the Nigerian economy, employing over 80% of the workforce and driving innovation. It is vital that we continue to support this sector through policies, incentives, and collaboration.”
Several institutions were honored at the event for their contributions to MSME development. Access Bank was named MSME Bank of the Year for its tailored financial services, while Moniepoint received recognition as MSME Microfinance Bank of the Year for its innovative microfinance solutions. E-Tranzact was awarded Best in Payment Security, and Mastercard won Best in MSME Financial Inclusion for expanding access to financial services.
Jude Ndu, CEO of The Economic Forum Series, highlighted the significance of strategic partnerships in providing financial support, mentorship, and capacity-building to MSMEs. Similarly, Temitola Adekunle-Johnson, Senior Special Assistant to the President on job creation and MSMEs, noted that MSMEs are increasingly leveraging digital platforms like WhatsApp, Instagram, and YouTube to grow their businesses and increase revenue.
Former Kaduna Central Senator Shehu Sani has criticized the World Bank for worsening Nigeria’s economic difficulties. In a post shared on X, Sani accused the institution of projecting that Nigeria’s hardship would extend for another 15 years before the country could reach a better economic future. He questioned how many Nigerians would be left to enjoy that future, and how many African nations the World Bank has successfully helped to prosperity.
Sani’s remarks follow the World Bank’s latest *Africa’s Pulse* report, which forecasts that the Nigerian Naira will be among the worst-performing currencies in Sub-Saharan Africa by August 2024. The report placed the Naira’s decline alongside that of the Ethiopian Birr and South Sudanese Pound.
Heirs Insurance Group (HIG) recently announced impressive financial results for the 2023 fiscal year, marking significant growth across all key metrics. The Group’s Gross Written Premium (GWP) surged by 59.3%, from N19.9 billion in 2022 to N31.7 billion in 2023. This remarkable performance underscores HIG’s resilience and operational efficiency, further solidifying its position as one of Nigeria’s fastest-growing insurance firms.
Heirs General Insurance (HGI) saw a 77% increase in GWP, reaching N12 billion in 2023. HGI’s profit before tax (PBT) also rose by 203%, reflecting the company’s effective cost management. Similarly, Heirs Life Assurance (HLA) reported a 71% GWP increase and a staggering 395% rise in PBT. Both companies have demonstrated a strong commitment to customer satisfaction, disbursing billions in claims.
Beyond financial success, HIG actively engages in corporate social responsibility (CSR) projects, contributing over N100 million to education, community development, and financial literacy. With plans for future expansion and innovation, HIG is poised to remain a key player in Nigeria’s evolving insurance market.
Federal Capital Territory (FCT) Minister, Nyesom Wike, has called on Nigerians to fulfill their tax obligations, emphasizing that government revenue is essential for delivering social services. Wike made this appeal during the inaugural Abuja Business and Investment Summit, held in Abuja on Wednesday.
Speaking on the summit’s theme, “Optimising Investment Through Partnerships,” Wike stressed the importance of collaboration to generate investment opportunities. He dismissed the misconception that the government does not need revenue, explaining that taxes are crucial for funding public services.
Wike reiterated that both investors and the government must benefit from such partnerships, ensuring that both parties “go home smiling” through a fair exchange of services and taxes.
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