Nigeria is contemplating reinstating a previously suspended telecom tax and other fiscal measures to secure a new $750 million loan from the World Bank. The Stakeholder Engagement Plan for Nigeria’s Accelerating Resource Mobilisation Reforms (ARMOR) program, dated March 2024, indicates negotiations for the loan are ongoing between the Federal Government and the World Bank.
The ARMOR program aims to enhance the government’s financial position by improving tax and customs compliance and safeguarding oil revenues. The planned tax reforms, affecting sectors like manufacturing, telecom, banking, and international trade, are expected to have significant implications across various economic sectors.
Key stakeholders, including telecom service providers, banks, manufacturers of goods like alcoholic beverages and tobacco products, and importers, will be affected. Engagements with industry groups like the Association of Licensed Telecom Operators of Nigeria (ALTON), the banking sector, and the Manufacturers Association of Nigeria (MAN) are underway to address concerns related to the proposed tax measures.