President Bola Tinubu’s government is considering lifting the suspended telecom tax and other fiscal policies on Nigerians to secure a new loan of $750 million from the World Bank.
According to a document published by the World Bank, the EMT levy on electronic money transfers through the Nigerian banking system, along with other taxes, is also being considered, in addition to the reintroduction of excises on telecom services.
Mr Tinubu suspended the five per cent excise duty on telecommunications and the Import Tax Adjustment levy on certain vehicles in July 2023. However, the document revealed that negotiations were underway between the World Bank and FG to secure the yet-to-be-approved loan.
The document highlights the importance of engaging various stakeholders in different sectors of the economy to ensure the successful implementation of the ARMOR program aimed at increasing domestic revenue mobilization. It emphasizes the need for collaboration with telecom operators, bankers, manufacturers, customs agents, vehicle importers and manufacturers, as well as public sector agencies regulating the affected services.
Furthermore, the document underscores the role of key public sector agencies such as the Nigerian Communication Commission, Central Bank of Nigeria, Federal Ministry of Environment, National Environmental Standards Regulatory and Enforcement Agency, and Federal Ministry of Health in implementing the new revenue measures.
It also outlines the specific budget allocations for technical assistance and funding for the ARMOR program, including annual budget allocations, results-based financing, investment financing, project management, tax policy capacity-building, and other expenses.
Overall, the document stresses the importance of a collaborative approach involving various stakeholders and government institutions to ensure the successful implementation of the ARMOR program and achieve the desired fiscal targets.
