The Nigerian government expressed concern on Tuesday about the underperformance of the Value Added Tax (VAT) in the country, stating that it is the lowest in the West African region.

This worrisome development has prompted the government to call for policy changes and a reevaluation of the country’s VAT rate, which currently stands at less than one percent of the Gross Domestic Product (GDP).

During a workshop on harmonizing Nigeria’s VAT Act with ECOWAS directives, the Director of Tax Policy in the Federal Ministry of Finance, Budget, and National Planning, Basheer Abdulkadir, highlighted the misalignment of VAT exemptions between Nigeria and ECOWAS.

He emphasized the need for a strategic approach to address these issues, including the exemption of certain products, goods, and services to benefit low-income households and align with ECOWAS guidelines