President Bola Tinubu has announced that education services will now be exempt from Value Added Tax (VAT) at zero per cent as part of a comprehensive tax reform aimed at easing the financial burden on households and expanding access to essential services.
In a statement issued on Thursday to mark the second anniversary of his administration, President Tinubu stated that the exemption of education, alongside food and healthcare, from VAT was a deliberate policy aimed at supporting low-income families and promoting inclusive economic growth.
“Essential goods and services such as education, food, and healthcare will now attract 0% VAT. Rent, public transportation, and renewable energy will be fully exempt from VAT to reduce household costs further,” the President stated.
President Tinubu described the measure as part of a bold and comprehensive tax reform agenda reshaping Nigeria’s fiscal framework. He noted that the country’s tax-to-GDP ratio rose from 10 per cent to over 13.5 per cent by the end of 2024 — the fastest growth in recent years.
“This was not by accident. It resulted from deliberate improvements in our tax administration and policies designed to make our tax system fairer, more efficient, and more growth-oriented,” he said.
The President added that beyond VAT reforms, the administration had dismantled multiple taxation barriers that previously hindered small businesses and had replaced opaque tax waivers with transparent incentives targeted at key sectors, including technology, manufacturing, and agriculture.
“These reforms are not just about revenue, but about stimulating inclusive economic growth,” he said.
He further revealed that state governments collectively recorded a revenue increase of over ₦6 trillion in 2024 as a result of the reforms. This additional income, he said, has allowed states to settle debts, pay salaries and pensions promptly, and invest more in infrastructure and human capital.
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