The federal government is considering a significant proposal aimed at alleviating the financial burden on Nigerians by removing taxes on essential items such as food, public transportation, and housing. This announcement was made by Taiwo Oyedele, the chairman of the presidential committee on fiscal policy, during an interview with Channels TV in Abuja on Monday.
Oyedele stated that the committee has recommended the removal of value-added tax (VAT) on these vital necessities, emphasizing the need to enhance affordability for citizens. “What we have taken into account are the basic necessities of life—food, accommodations, transportation, education, and health. We’ve deliberately identified those items and proposed the removal of almost all applicable taxes,” he explained.
The proposal will soon be submitted to President Bola Ahmed Tinubu for approval before being forwarded to the National Assembly to be incorporated into the nation’s tax laws.
Under the proposed changes, share-passenger transportation would be entirely tax-free, making it easier for low-income individuals to access public transport. However, Oyedele noted that taxi services would still be subject to tax, operating under the assumption that users of such services are less likely to be among the poorest Nigerians.
“This approach aims to make essential services more accessible to the Nigerian populace,” Oyedele added. The proposal reflects the government’s commitment to supporting citizens in meeting their basic needs amidst ongoing economic challenges.
