VAT rate in Nigeria (2024).

**The reasoning** Nigeria's Value Added Tax (VAT) rate was increased from 5% to **7.5%** in February 2020, and this rate remains in effect as of 2024. VAT is a consumption tax added to goods and services at each stage of production or distribution. This is current law under the Finance Act, and it's a standard commercial/economics fact you'll see in exams testing Nigerian fiscal policy. **Why the wrong options tempt you** - **5%** was the old rate (pre-2020), so if you learned from outdated materials or remembered old discussions, you'd pick this. - **10%** and **12%** might seem familiar because they're common VAT rates in other African countries (Ghana uses 12.5%, Kenya uses 16%). Your brain might confuse Nigeria's rate with regional neighbors. **Quick takeaway** Remember: "Nigeria moved to 7.5% VAT in 2020 and hasn't changed it since" — if you see this question, think "seven-point-five" and you're golden. Update any old notes that still say 5%!