Borno State Governor, Babagana Zulum, has sanctioned a two-year tax exemption for traders impacted by the flood disaster in September 2024 and the fire incident at the Maiduguri Monday market.
Prof. Ibrahim Bello, Chairman of the Borno State Internal Revenue Service (BO-IRS), announced this decision while speaking to reporters in Maiduguri on Sunday. He stated that the initiative is intended to support economic recovery and alleviate financial pressures on businesses.
Bello elaborated that this tax waiver is part of the state government’s broader reforms in tax administration, aimed at improving the business environment and fostering economic development.
The flood disaster in September 2024 severely disrupted economic activities in Borno, leaving many businesses and households struggling to recover. Additionally, traders at the Maiduguri Monday Market, a vital commercial center, incurred substantial losses due to a catastrophic fire earlier in the year.
According to the United Nations Office for the Coordination of Humanitarian Affairs (OCHA), over 300,000 individuals have been temporarily displaced and are currently residing in 30 relocation sites following evacuations from flood-affected regions within the Maiduguri Metropolitan Council (MMC), Jere, and Konduga local government areas (LGAs).
By implementing this tax waiver, Governor Zulum seeks to offer relief to the affected traders, enabling them to reinvest in their enterprises without the added burden of tax liabilities.
Bello noted that Borno State has made considerable progress in modernizing its tax framework, emphasizing that tax revenues are being directed towards infrastructure projects, including road construction and urban renewal initiatives in areas such as Jiddari, Umarari, GRA, Bulumkutu, Custom, Chad Basin, and other significant locations.
The anticipated tax waiver is expected to offer essential financial support to businesses facing difficulties, enabling them to recuperate and maintain their operations. By alleviating financial pressures, it is projected to stimulate local commerce and build investor confidence, thereby promoting a more dynamic economic atmosphere.
Moreover, the waiver seeks to improve economic resilience, equipping businesses and the broader economy to better navigate future adversities or crises.
In addition, as the state enhances its revenue frameworks, this initiative is likely to foster voluntary tax compliance, contributing to a more sustainable and collaborative fiscal environment.
