Reduced VAT / GST rate
0[1]
Standard VAT / GST rate
7.5[2][3]
High VAT / GST rate
Not applicable
______________________
On 01 January 2026, the Nigeria Tax Act, 2025 (NTA) took effect in Nigeria and repealed the previous Value Added Tax Act (VAT). Accordingly, the law regulating VAT in Nigeria is the NTA.
[1] Under the NTA, the goods and services which attract VAT at zero rate are as follows: (i) basic food items; (ii) all medical and pharmaceutical products including medicinal herbal products; (iii) educational books and materials; (iv) fertilisers; (v) locally produced agricultural chemicals; (vi) locally produced veterinary medicine; (vii) locally produced animal feeds; (viii) live cattle, goats, sheep and poultry; (ix) agricultural seeds and seedlings; (x) electricity generated by generation companies (GENCOs) and supplied to National Grid or Nigeria Bulk Electricity Trading Company (NBET); (xi) electricity transmitted by Transmission Company of Nigeria (TCN) to Electricity Distribution Companies (DISCOs); (xii) medical services; (xiii) tuition relating to nursery, primary, secondary or tertiary
education; (xiv) exported goods excluding oil and gas; (xv) exported services; (xvi) exported incorporeal property; (xvii) medical equipment.
[2] Under the NTA, VAT is charged at the rate of 7.5% on the supply of taxable goods and services except where specifically exempted. The goods and services exempted from VAT include: (i) oil and gas exports; (ii) crude petroleum oil and feed gas for all processed gas; iii) goods purchased for use in humanitarian donor funded projects provided that the humanitarian donor shall first pay the VAT and request a refund from the Service; (iv) baby products; (v) locally manufactured sanitary towels, pads or tampons; (vi) military hardware, arms, ammunitions and locally manufactured uniforms supplied to armed forces, para-military and other security agencies of a Nigerian government; (vii) shared passenger road-transport service; (viii)purchase, hire, rental or lease of tractors, ploughs and other equipment used for agricultural purposes. (ix) supplies consumed by an approved entity in the export processing or free trade zones, provided that the supplies are consumed on its approved activity; (x) goods or services supplied to a diplomatic mission, diplomat or person recognised under the Diplomatic Immunities and Privileges Act whose activity is in public interest, and not for profit; (xi) plays and performances conducted by educational institutions as part of learning; (xii) land or building including interest in land or building; (xiii) money, stakes or securities including interest in money or securities; (xiv) Government licences; (xv) Assistive devices and disability-related products including hearing aids, wheelchairs, and braille materials (xi) petroleum products; (xii) renewable energy equipment; (xiii) compressed natural gas (CNG); (xiv) Liquefied Petroleum Gas (LPG); and (xv) other gaseous hydrocarbons.
[3] In addition to the NTA, the VAT (Modification) Order 2024 - a subsidiary legislation - exempts the following from VAT: (i) Liquefied Petroleum Gas (LPG) equipment including conversion kits; (ii) Domestic Liquefied Natural Gas (LNG) processing facilities and equipment; (iii) electronic vehicles; (iv) parts, semi-knock-down units for the assembly of electric vehicles; (v) biogas and biofuel equipment and accessories for clean cooking and transportation; (vi) Compressed Natural Gas (CNG) conversion and installation services; (vii) Liquefied Petroleum Gas (LPG) conversion and installation services; and (viii) Manufacturing, assemblage and sale of electric vehicles.