President Tinubu Announces 0% VAT on Rent, Public Transport, and Renewable Energy

In a significant policy shift, President Bola Tinubu has declared full Value Added Tax (VAT) exemptions for rent payments, public transportation services, and renewable energy products. The announcement came as part of his second-year anniversary address to the nation on [insert date].

The President framed these measures as targeted relief for Nigerian households grappling with rising costs of living. “These VAT exemptions are designed to ease the financial burden on families and promote sustainable energy adoption,” Tinubu stated.

The tax reforms extend beyond housing and transport. Essential commodities including basic food items, educational materials, and healthcare services will now benefit from a 0% VAT rate, a move expected to directly impact citizens’ disposable income.

In his words;

‘’One of our administration’s most impactful achievements is our bold tax reform agenda, which is already yielding results. By the end of 2024, our tax-to-GDP ratio rose from 10% to over 13.5%, a remarkable leap in just one year. This was not by accident. It results from deliberate improvement in our tax administration and policies designed to make our tax system fairer, more efficient, and more growth-oriented.

We are eliminating the burden of multiple taxation, making it easier for small businesses to grow and join the formal economy. The tax reforms will protect low-income households and support workers by expanding their disposable income. Essential goods and services such as food, education, and healthcare will now attract 0% VAT. Rent, public transportation, and renewable energy will be fully exempted from VAT to reduce household costs further.

We are ending the era of wasteful and opaque tax waivers. Instead, we have introduced targeted and transparent incentives supporting high-impact manufacturing, technology, and agriculture sectors. These reforms are not just about revenue but about stimulating inclusive economic growth.

There is a deliberate focus on our youth, who a friendlier tax environment for digital jobs and remote work will empower. Through export incentives, Nigerian businesses will be able to compete globally. Our National Single Window project streamlines international trade, reduces delays, and enhances Nigeria’s competitiveness.

To promote fairness and accountability, we are establishing a Tax Ombudsman, an independent institution that will protect vulnerable taxpayers and ensure the system works for everyone, especially small businesses.