IN SHORT: Several posts on Facebook claim that the Nigerian government has jacked up value added tax (VAT) from 7.5% to 10%. This is not true, according to the country's finance minister.
A post on Facebook claims that VAT in Nigeria has risen sharply from 7.5% to 10%.
The post reads: “Just in: Value Added Tax has just been increased from 7.5% - 10%. Fuel price and VAT increased in one day.”
Value added tax, or VAT, is a consumption tax levied on the value of goods and services.
VAT in Nigeria is levied on all taxable goods and services that are supplied in or imported into the country. In 2020, the Nigerian government increased VAT from 5% to 7.5%.
In March 2023, former finance minister Zainab Ahmed advised the current government to raise VAT from 7.5% to 10%.
In June 2024, the chairperson of the presidential committee on tax and fiscal reforms, Taiwo Oyedele, said that the proposed plan to raise the VAT rate from 7.5% to 10% would be implemented in phases.
Similar claims of an increase can be found here and here. (Note: See more listed instances at the end of this report.)
In September, the Nigerian National Petroleum Company increased its pump price from N617 to N897 per litre. Did the government follow suit in inflicting economic pain on Nigerians by raising VAT from 7.5% to 10%? We checked.
Ignore message, says minister
Wale Edun is Nigeria’s minister of finance, with more than four decades of experience as a banker, economist and financial advisor.
On 9 September, in a statement signed by Mohammed Manga, the director of information and public relations at the ministry, Edun denied claims that the government had increased VAT to 10%.
“The Federal Government has officially debunked reports suggesting that the President Bola Ahmed Tinubu-led Administration plans to raise Nigeria’s Value-Added Tax (VAT) from 7.5% to 10%,” the statement read.
“The Federal Ministry of Finance remains committed to transparent communication on all tax and economic policy matters, ensuring that citizens are well-informed and not misled by unfounded reports.”
Beware of fake claims on social media.
Similar posts were found here, here, here, here, here, here, here, here and here.
For publishers: what to do if your post is rated false
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