As part of the Federal Government’s plan to boost domestic revenue collection through a series of tax reforms, documents show that Nigeria agreed to tax regulations on web-based gambling, electronic money transfers, motor vehicles, among others, including alcohol.
As part of Nigeria’s attempts to boost domestic revenue collection, documents show it agreed to tax measures such as online betting, electronic money transfers, motor vehicles and alcohol in a series of tax reforms.
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The loan under the Accelerating Resource Mobilisation Reforms (ARMOR) Programme-for-Results was intended for fiscal reforms geared towards augmenting Nigeria’s revenue base to lessen the borrowing.
The World Bank has published programme documents that provide a blueprint for the steps that would be expected to be taken in the implementation of the facility.
The documents list the following pledges for reform, among others: hike in excise tax on alcohol and tobacco, tax on online betting and gambling, introduction of telecommunications excise duty, green taxes on specific motor vehicles and single-use plastics, introduction of an electronic money transfer duty.
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Some of these measures have since come into effect. In addition, Nigeria’s tax system has been re-formed to include the Electronic Money Transfer Levy (EMTL) and the Federal Government has implemented environmental surcharges on some types of vehicles as part of fiscal policy measures.
Other suggested measures are still under the government’s implementation and law-making procedures.
The Tinubu administration has always justified its tax reforms, saying they needed to generate more non-oil revenue to support the development of infrastructure, provision of public services and for long-term fiscal sustainability.
They argue that high revenue mobilisation overall will help ease the strain on public finances and would enable the implementation of economic reforms.
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The proposed tax measures have been criticized by some sections of the private business, telecommunications companies, manufacturers, and by opposition, who say the extra taxes would impose more pressure on businesses and further strain finances of already strained households.
The ARMOR programme is part of a broader multi-year public finance reform and strengthening of tax administration programme with the World Bank and the Government of Nigeria.
