Africa FA Law Legislation Nigeria Tax

Nigeria 2020 Goods and services exempted from VAT

In Nigeria, Value Added Tax (VAT) is a consumption tax levied at the rate of 7.5% on goods and services supplied to consumers for a fee.  From a joint reading of the Value Added Tax Act 1993, the Finance Act 2019 and the recent Value Added Tax Act (Schedule Modification) Order 2020 (“Order”), below is the list of goods and services  exempted from VAT in Nigeria:


It should, however, be noted that the Federal Inland Revenue Service issued a public notice dated June 24, 2020, which seems to contradict the provisions of the Order stating that natural gases, raw materials for pharmaceutical products, renewable energy equipment, raw materials for baby diapers and sanitary products are not exempted from VAT. It is, therefore, advisable that businesses dealing in these goods seek legal advice prior to making key business decisions on the forgoing.

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