CLAIM: Nigeria’s VAT Rate Increases To 17 Percent Under New Tax Law
On January 5, 2025, an X user @Avenata01 claimed that a radio station in Nigeria reported that the value added tax (VAT) rate had been raised to 17 percent following the implementation of the new tax law. The post which was a reply to an X post reads, “I heard on the radio that VATwas increased to 17%.”
VERIFICATION
Nigeria’s VAT is governed by the Value Added Tax Act and administered by theNigeria Revenue Services (formerly the Federal Inland Revenue Service, FIRS) and other relevant authorities. The most recent official data shows that VAT continues at 7.5 percent, and senior government officials have explicitly confirmed the rate has not changed. This current rate was increased from 5 percent in 2020 and has stayed unchanged since then.
In October 2024, Nairametrics reported that a document prepared by the Ministry of Finance proposed increasing VAT to a higher rate such as 10 percent or then gradually to 15 percent in the future. But this proposal was not enacted into law and does not mean a current rate increase has taken effect.
Under the new tax reform framework which took effect in 2026, the federal government has confirmed that Nigeria’s VAT rate will remain at 7.5 percent. The reforms focus on improving tax administration and compliance rather than increasing the VAT rate.
CONCLUSION
The claim that Nigeria’s VAT rate has been raised to 17 percent is FALSE. Official sources and the new tax reform framework, which took effect on January 1, 2026, confirms that the VAT rate remains at 7.5 percent.
