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.
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