Benue State University, Makurdi

The Conundrum in the Case between the A.G. Rivers State V Firs and Attorney General of the Federation

Ochenehi, D.S.* Eyyazo, D.M.**, and Hussaini, M.***

Abstract

In Nigeria, VAT is regulated by the Value Added Tax Act of 1993, which established the Federal Inland Revenue Service (FIRS) as the agency responsible for administering and collecting VAT. Currently, the VAT rate in Nigeria is 7.5%, which was increased from 5% in 2020, which is relatively low compared to other countries1. Businesses that are required to register for VAT include those with an annual turnover of ₦25 million or more, as well as companies that provide taxable goods and services. The FIRS also provides exemptions and zero-rated VAT items, which include basic food items, medical and pharmaceutical products, books and educational materials, and exports. VAT is an important source of revenue for the Nigerian government. In 20202, the FIRS collected a total of ₦1.53 trillion in VAT, which accounted for about 17% of the agency's total revenue.

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