Business
FEC Approves Increase in VAT from 5% to 7.2%
The Federal Executive Council on Wednesday approved an increase in the Value Added Tax (VAT) payable in Nigeria.
The Minister of Finance, Zainab Ahmed, announced the approval while briefing journalists after the FEC meeting presided by President Muhammadu Buhari.
Mrs Ahmed said the VAT was increased from the current 5 per cent to 7.2 per cent.
“We also reported to council and council has agreed that we start the process towards the increase of the VAT rate.
“We are proposing and council has agreed to increase the VAT rate from 5 per cent to 7.2 per cent,” she said.
Mrs Ahmed gave an increase in revenue accruable to state governments as one of the reasons for the increase.
“This is important because the federal government only retains 15 per cent of the VAT, 85 per cent is actually for the states and local government and the states need additional revenue to be able to meet the obligations of the minimum wage.”
The minister, however, said the implementation will not be immediate as there was the need to amend the current law.
“This process involves extensive consultations that needs to be made across the country at various levels and also it will involve the review of the VAT Act.
“So, it is not going to be implemented immediately until the Act is reviewed,” she said.
She said the increase in the VAT was also included in the government’s revenue projection for 2020.
“Following these assumptions, the total revenue estimate in the sum of N7.5 trillion for the year 2020 and N2.09 trillion that will be accruing to the federation account and the VAT respectively.
“There will of course be the distribution to the three tiers of government based on the statutorily revenue sharing formula as defined in the constitution and to this effect, it means the federal government will be receiving proposed aggregate of N4.26 trillion from the federal account and the VAT pool, while the states and the local government are expected to receive N3.04 trillion and N2.27 trillion respectively,” she said.
Mrs Ahmed also spoke on the government’s planned expenditure for 2020. She said about N2.45 trillion has been proposed for debt servicing.
“The expenditure for the year 2020 is in the total sum of N10.07 trillion. This is three per cent less than the approved expenditure in the 2019 budget that has been passed into law. The total expenditure includes statutory transfers, non-debt recurrent expenditure such as salaries and pensions and also the Social Intervention Programme.
“The 2020 budget has a debt service estimated at N2.45 trillion and a sinking fund to retire maturing obligations issued to local contractors and other creditors in the sum of N296 billion. So there is a total sum of N3.43 trillion that is provided for personnel and pension cost inclusive of N218 billion for the top 19 government-owned enterprises in the country. This represents an increase of N453 billion over the 2019 approved budgetary expenditure. This also implies a 40 per cent of this recurrent expenditure to the projected revenue.
“The budget deficit is projected at N2.15 trillion in the year 2020 and this is lower than what was approved in the 2019 budget which was N2.47 trillion.
“Let me state that these projections include drawdowns on project tied loans and these represent 1.51 per cent of estimated gross domestic product (GDP). This is well below what is allowed by the Fiscal Responsibility Act of 2007 which is still put at 3 per cent.
“I want to add that council approved our presentation and so the next phase for us is to consult with the National Assembly and then the Medium Term Expenditure Framework (MTEF) to the National Assembly for their own view and subsequent approval,” she said.
The 2020 budget proposal is expected to be submitted to the National Assembly when they reconvene from their recess later this month.
Senate President Ahmed Lawan has said the National Assembly would pass the budget before the end of the year if it receives it early from the Executive.
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In celebration of the Easter season, Adron Homes and Properties Limited has announced the launch of its much-anticipated Easter Fiesta Promo, offering Nigerians a unique opportunity to secure land ownership with a 30 percent discount and flexible payment plans of up to 36 months.
The promo, which runs for a limited period, is designed to make property acquisition easier and more rewarding for families, working professionals, entrepreneurs, and investors seeking to build long-term wealth through real estate.
According to the company, the Easter Fiesta covers its estates located in Lagos, Shimawa, Sagamu, Atan–Ota, Papalanto, Abeokuta, Ibadan, Osun, Ekiti, Abuja (FCT), Nasarawa, and Niger.
Management noted that Easter symbolizes renewal, sacrifice, and new beginnings, values that align with the company’s mission of helping Nigerians secure tangible assets that create generational impact.
“Easter represents hope and a fresh start. At Adron Homes, we believe one of the most meaningful ways to embrace new beginnings is through property ownership. This promo is structured to remove financial barriers and encourage more Nigerians to invest in land, which remains one of the safest and most reliable assets,” the company stated.
Beyond the 30 percent discount, subscribers will also enjoy structured gift packages under both Platinum and Compact plot categories, with milestone-based rewards ranging from food items and livestock to household appliances. The initiative is aimed at providing immediate value while customers build long-term investment portfolios.
Industry analysts have consistently identified land banking in rapidly expanding suburban corridors as a strategic hedge against inflation and economic uncertainty. By offering extended installment plans of up to 3 years, Adron Homes is positioning itself as a key player in addressing accessibility challenges in Nigeria’s housing ecosystem.
With verified titles, strategic estate planning, and customer-friendly payment structures, the company continues to reinforce its reputation as one of Nigeria’s leading real estate brands.
As the Easter celebration approaches, prospective subscribers are encouraged to take advantage of the limited-time Easter Fiesta offer through accredited marketers and Adron Homes offices nationwide.
This Easter, the company urges Nigerians to look beyond short-term festivities and embrace investments that build a lasting legacy.
Ecobank Nigeria, a subsidiary of the leading pan-African financial services group Ecobank Group, has unveiled a significantly enhanced version of its multi-award-winning gender financing initiative, Ellevate by Ecobank, as part of activities commemorating International Women’s Day 2026. The upgraded programme reinforces the bank’s long-term commitment to advancing women-led enterprises in Nigeria and across Ecobank’s pan-African footprint.
Originally launched to improve access to finance for women-owned, women-led, and women-focused small and medium-sized enterprises (SMEs) within its Commercial Banking segment, the enhanced Ellevate programme now adopts a broader, more inclusive structure. The new framework extends across all business segments, positioning Ellevate as a comprehensive ecosystem designed to address the structural financing and growth barriers faced by women entrepreneurs.
Speaking on the development, Managing Director of Ecobank Nigeria, Bolaji Lawal, said the enhanced programme further strengthens the bank’s ambition to be the financial partner of choice for women entrepreneurs.
“Since its launch in Nigeria in July 2021, Ellevate has delivered meaningful impact for SMEs and women-led businesses. This next phase deepens our value proposition and reinforces our resolve to remain the preferred financial partner for women entrepreneurs,” he said.
Under the expanded structure, beneficiaries will enjoy improved access to credit on competitive terms, including more flexible collateral considerations aimed at easing traditional financing constraints. Beyond lending, the programme integrates digital payment, collections, and cash management solutions to enhance operational efficiency and support scalability.
A core pillar of the enhancement is structured market access. Through the bank’s MyTradeHub online matchmaking platform and e-commerce enablement capabilities, women entrepreneurs will be better positioned to connect with customers and trade partners across Africa, facilitating cross-border expansion and participation in regional value chains.
The initiative also incorporates robust non-financial support mechanisms, including targeted training programmes, leadership development sessions, and knowledge-sharing platforms to strengthen managerial capacity and long-term sustainability. This is complemented by access to customised wealth management advisory services, integrated insurance solutions, and a loyalty framework offering commercial incentives through select retail and lifestyle partnerships.
Lawal noted that the programme aligns with Ecobank’s broader ambition to drive inclusive growth by empowering women as critical contributors to economic development.
“African businesswomen deserve world-class banking solutions that drive turnover, profitability, and sustainable growth. Our approach goes beyond financial inclusion to building an enabling ecosystem that enhances competitiveness and long-term resilience,” he added.
He further highlighted that Ecobank Nigeria consistently hosts flagship platforms such as Adire Lagos, Oja Oge, +234Art Fair, the Lagos Pop-Up Museum, SME Bazaar, and the Design & Build Exhibition, which provide prominent opportunities for showcasing and elevating women-owned businesses.
With this enhancement, Ecobank Nigeria deepens its strategic positioning in gender-lens financing while aligning with its wider pan-African mandate to advance financial inclusion, SME development, and regional trade integration.
