Millions of Nigerians who work as market traders or informal business owners
are to be targeted for Value Added Tax (VAT) payments, according to the
authorities.
As many as 40 million people fall into this category, according to Nigeria’s federal
tax agency and the Market Traders Association (Matan), which both say they
want to widen the country’s tax net.
Under the plans, market traders are to be issued a digital ID with a unique tax
identification number – or “TIN” – which tracks their turnover and remittances
to Nigeria’s federal revenue service.
The body says just over 10% of Nigeria’s government revenue is generated from
taxes, one of the world’s lowest proportions, as most of the revenue is generated
from crude oil sales.
In the last 30 days, Nigeria, Africa’s largest economy has embarked on a series
of economic and fiscal reforms, which President Bola Tinubu’s new administration
hopes can steer the country out of its current economic crisis marred by soaring
inflation, a high cost of living and dwindling government revenues.