Borno State Governor, Babagana Zulum, has approved a two-year tax waiver for traders affected by the September 2024 flood disaster and the Maiduguri Monday Market fire incident, in a move aimed at facilitating economic recovery and easing financial burdens on businesses.
The Chairman of the Borno State Internal Revenue Service (BO-IRS), Prof. Ibrahim Bello, disclosed this while addressing journalists in Maiduguri on Sunday.
He explained that the waiver is part of the state government’s ongoing tax administration reforms, designed to enhance the ease of doing business and encourage economic growth.
The September 2024 flood disaster significantly disrupted economic activities in Borno, with businesses and households struggling to recover. Similarly, traders at the Maiduguri Monday Market—a major commercial hub—suffered heavy losses due to a devastating fire earlier in the year.
More than 300,000 temporarily displaced people have been registered in 30 relocation sites following relocations from flood affected areas in the Maiduguri Metropolitan Council (MMC), Jere and Konduga local government areas (LGAs), according to the United Nations Office for the Coordination of Humanitarian Affairs (OCHA).
By granting a tax waiver, Governor Zulum aims to provide relief to affected traders, allowing them to reinvest in their businesses without the additional burden of tax obligations.
Borno’s Progress in Tax Administration
According to Bello, Borno State has made significant strides in modernizing its tax system. The state now ranks 12th nationally for improved and digitized tax administration, reflecting its commitment to transparent and efficient revenue collection.
- He highlighted that tax revenues are already being channeled into infrastructure projects, including road construction and urban renewal efforts in Jiddari, Umarari, GRA, Bulumkutu, Custom, Chad Basin, and other key areas.
- The tax waiver is anticipated to provide much-needed financial relief to struggling businesses, allowing them to recover and sustain their operations. By reducing financial burdens, it is expected to boost local trade and instill confidence in investors, fostering a more vibrant economic environment.
Additionally, the waiver aims to enhance economic resilience, ensuring that businesses and the overall economy can better withstand future challenges or disasters. Furthermore, as the state strengthens its revenue systems, the initiative is likely to encourage voluntary tax compliance, creating a more sustainable and cooperative fiscal landscape.
Key Highlights
- Governor Babagana Zulum grants a two-year tax exemption for affected traders.
- The initiative is part of broader tax administration reforms.
- Borno now ranks 12th in Nigeria for improved and digitized tax administration.
- Tax revenue is funding key infrastructure projects across the state.
