The Federal Government of Nigeria has reiterated its dedication to boosting the micro, small, and medium enterprise (MSME) sector through the implementation of tax incentives. This commitment was emphasized by Zacch Adedeji, the Executive Chairman of the Federal Inland Revenue Service (FIRS), during the inaugural MSME Finance Awards organized by The Economic Forum Series in collaboration with Nairametrics and DigiComm Enterprise. Adedeji, represented by his special adviser Collins Omokaro, articulated the government’s objectives to cultivate an environment conducive to the growth and sustainability of MSMEs through tailored tax relief and exemptions.
FIRS has taken measures to lessen the financial burdens faced by MSMEs, which include tax exemptions from company income tax and relief from the obligation to collect value-added tax for small businesses as defined under the Company Income Tax Act. Adedeji highlighted the government’s extensive efforts to streamline tax compliance for these enterprises, aiming to increase engagement within the formal economy and ensure optimal benefits from tax incentives. There are also ongoing discussions within the FIRS about raising the threshold for tax exemptions to encompass a broader range of MSMEs, which aligns with their goals of inclusivity and support for this vital sector.
The MSME Finance Awards, a significant event inadvertently spotlighting the impact of MSMEs on Nigeria’s economy, also served to recognize entities contributing positively to this realm. Ugochukwu Obi-Chukwu, CEO of Nairametrics, underlined the pivotal role these enterprises play, employing over 80% of the workforce and driving innovation across diverse sectors. His statement emphasized the necessity for continued collaboration between the public and private sectors to bolster this vital segment of the economy through comprehensive supportive policies and incentives.
The awards ceremony celebrated several organizations for their significant contributions to the MSME landscape. Sterling Bank was honored as the MSME Bank of the Year for its specialized financial services catered to small businesses, while VFD was recognized as the MSME Microfinance Bank of the Year for its innovative approaches in the microfinance domain. E-Tranzact received accolades for excellence in payment security and fraud prevention, while Mastercard was acknowledged for its role in enhancing financial inclusion among MSMEs. These awards serve to motivate other institutions to invest in and advocate for this sector, thereby fostering a more robust economic environment.
Jude Ndu, CEO of The Economic Forum Series, articulated the importance of MSMEs as crucial economic drivers, stressing that strategic partnerships are essential for bridging financial gaps. He called for a concerted effort to provide MSMEs with the financial support, mentorship, and capacity building necessary for survival and growth. This collaborative approach between various stakeholders will likely lead to improved resilience and innovation within the sector, enabling them to effectively contribute to broader economic objectives.
Furthermore, Temitola Adekunle-Johnson, the Senior Special Assistant to the President on job creation and MSME, pointed out the dynamic ways in which MSMEs are harnessing digital platforms like WhatsApp, Instagram, and YouTube to enhance their market reach and boost revenue. The adoption of digital tools illustrates the sector’s adaptation to modern challenges, allowing for greater flexibility and opportunity in a rapidly evolving business landscape. Together, these insights portray a government and community committed to not just empowering MSMEs but also ensuring that they remain a foundational element of Nigeria’s economic structure.
