Following a cabinet meeting held 12 September 2019, Nigeria's Finance Minister Zainab Ahmed announced that the Federal Government has put forward a proposal that would increase the standard VAT rate from 5% to 7.5% in order to help reduce the country's budget deficit amid stagnant oil prices. The increase is proposed to be implemented from 1 January 2020, although it will need the approval of the National Assembly, as well as state and local governments.