Nigeria’s government is considering lifting a suspended telecom tax and other fiscal policies on Nigerians to secure a new loan of $750 million from the World Bank.
Details
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.
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Nigeria President Tinubu suspended the 5% 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.
Digging Deeper
The World Bank document stated, “Domestic Revenue Mobilisation drive in the government ARMOR program seeks to increase revenue on some targeted industries and sectors of the economy.
Specific groups and agencies within affected sectors include the Association of Licensed Telecom Operators of Nigeria: The introduction of excises on telecom services requires that all telcos are mobilised to fully participate in the collection of such revenue.
“Committee of Bankers: Introduction of EMT levy on electronic money transfers through the Nigerian Banking System would need the buy-in of all banking institutions.”
Source: People’s Gazette
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