By
Taiye Bayode
The Kogi State Government has reassured entrepreneurs, traders and small business owners that businesses with a capital base of ₦100 million and below are currently exempt from certain tax obligations under the Federal Government’s ongoing tax reforms, urging them to take advantage of the policy by formalising their businesses without fear of excessive taxation.
The assurance was given by the Commissioner for Finance, Budget and Economic Planning, Hon. Asiwaju Asiru Idris, during the distribution of CAC certificates to beneficiaries and launch of the SMEs Business Support Cooperative on Monday, at Government House, Lokoja.
Addressing entrepreneurs at the event, the Commissioner acknowledged that many business owners often become apprehensive whenever tax authorities are mentioned, noting that such fears have discouraged many from registering and expanding their businesses.
Hon. Asiwaju explained that the current tax reforms introduced by the Federal Government, allows businesses with a capital base of ₦100 million and below to no longer be subject to certain taxes previously imposed on small enterprises, describing the policy as a deliberate effort to create a friendlier environment for business growth.
While clarifying that eligible businesses must still comply with statutory filing requirements, including the submission of tax returns where applicable, Hon. Asiwaju also stressed that entrepreneurs should no longer see business registration as an invitation to multiple tax burdens but rather as a gateway to wider economic opportunities.
According to him, formalising businesses opens access to government interventions, development finance, institutional partnerships and larger markets, while also positioning entrepreneurs to benefit from programmes specifically designed for registered enterprises.
The Commissioner linked the policy direction to Governor Ahmed Usman Ododo’s 32-year development agenda, explaining that the administration was deliberately laying the foundation for a private-sector-driven economy where small businesses would serve as the engine of long-term economic growth.
Drawing comparisons with countries such as China, Singapore, Qatar and Dubai, he observed that their economic transformation was achieved through consistent planning, business-friendly policies and deliberate support for local enterprises over several decades.
He noted that Kogi State was pursuing a similar path by creating legal and institutional frameworks that encourage entrepreneurship, improve access to finance and strengthen the capacity of indigenous businesses to compete beyond the state.
Representing Governor Ahmed Usman Ododo at the event, the Deputy Governor, His Excellency, Comrade Joel Salifu, said the distribution of CAC certificates underscored government’s commitment to moving more businesses from the informal sector into the formal economy, reiterating that business registration gives entrepreneurs legal identity, improves their access to credit facilities, investment opportunities, government interventions and participation in both national and international markets.
The Deputy Governor encouraged beneficiaries to maintain proper financial records, operate with integrity, fulfil their tax obligations where applicable and build enterprises capable of creating employment opportunities across the state.
Earlier, the Managing Director of KEDA, Alh. Muhammed Kadiri Okeji, described business formalisation as a critical step towards building a vibrant entrepreneurial ecosystem, noting that registered businesses enjoy greater credibility and are better positioned to attract financing, partnerships and government support, reaffirming the agency’s commitment to supporting entrepreneurs beyond registration through capacity development, business advisory services, access to markets and financing opportunities.
