Source: Punch Newspaper
The Federal Government of Nigeria has reaffirmed its dedication to promoting the growth and sustainability of micro, small, and medium enterprises (MSMEs) through a series of tax incentives. This commitment was emphasized by Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service (FIRS), during the inaugural MSME Finance Awards. The event was organized by The Economic Forum Series in collaboration with Nairametrics and DigiComm Enterprise.
Adedeji, represented by his special adviser, Collins Omokaro, reiterated the government’s focus on fostering an enabling environment for MSMEs, particularly through tax relief and exemptions. He stated, “The Federal Government, via FIRS, has introduced reforms aimed at easing the financial load on MSMEs. Small businesses, as defined by the Company Income Tax Act, are exempt from paying corporate income tax and from collecting value-added tax.”
He stressed that these tax policies are designed to simplify compliance for MSMEs, encouraging them to participate in the formal economy while maximizing the benefits of these tax incentives. Furthermore, Adedeji disclosed that FIRS is considering proposals to raise the tax exemption threshold, which would extend these benefits to even more MSMEs.
The MSME Finance Awards highlighted the critical role MSMEs play in Nigeria’s economic landscape. Ugochukwu Obi-Chukwu, CEO of Nairametrics, underscored their significance, stating, “MSMEs are the backbone of Nigeria’s economy, accounting for over 80 percent of the workforce and driving innovation across multiple sectors. Continuous support through policies and collaboration between the public and private sectors is essential for this sector’s growth.”
Several organizations were recognized during the awards ceremony for their notable contributions to the MSME sector. Access Bank was awarded MSME Bank of the Year for its specialized financial services tailored to small businesses. Moniepoint was named MSME Microfinance Bank of the Year for its innovative microfinance solutions, while E-Tranzact was commended for its excellence in payment security, data protection, and fraud prevention. Mastercard received recognition for Best in MSME Financial Inclusion, applauded for expanding access to financial services for small enterprises.
Jude Ndu, CEO of The Economic Forum Series, highlighted the vital role MSMEs play as economic catalysts, emphasizing the need for strategic partnerships to close financial gaps, offer mentorship, and build capacity within the sector.
In conclusion, Temitola Adekunle-Johnson, Senior Special Assistant to the President on job creation and MSMEs, acknowledged the success of many MSMEs in utilizing digital platforms such as WhatsApp, Instagram, and YouTube to expand their market reach and increase revenue.
The Federal Government’s ongoing commitment, alongside innovative efforts from the private sector, positions Nigeria’s MSMEs for a more sustainable and prosperous future.
