The Federal Executive Council (FEC) of Nigeria meeting on Wednesday announced that the old 5% Value-Added Tax (VAT) will be applied for the contracts signed before February 1. Malam Garba Shehu, senior special assistant, media and publicity to the president, made the clarification statement while addressing the journalists in Abuja. This has resolved the confusion on whether to use the new or old VAT rate, that has prevailed since the declaration of the amendment which raised the VAT rate to 7.5%.
Some contracts handled by various ministries are from several years back and it has been decided that the contracts signed on 5% before February 1 will remain at 5% and the ones after will have a VAT of 7.5% applied.
