Potential Telecom Tax Reintroduction Looms as Nigeria Seeks $750 Million World Bank Loan

…Telecom Stakeholders Brace for Possible Excise Duty Revival

Nigerian telecom operators may face the reintroduction of a previously suspended telecom tax as the government negotiates a new $750 million loan from the World Bank. This news comes from a Stakeholder Engagement Plan document obtained by Nairametrics.

Recall, President Bola Tinubu in July 2023 ordered the suspension of the 5% excise duty on telecommunications and the Import Tax Adjustment levy on certain vehicles.

Key Points for Telecom Stakeholders:

Loan Conditionality: Resuming the telecom excise duty and other fiscal measures is reportedly a requirement for securing the World Bank loan.

Stakeholder Engagement: The Association of Licensed Telecom Operators of Nigeria (ALTON) will be consulted regarding the potential tax changes.

Impact on Industry: Reintroducing the tax could increase costs for telecom operators and potentially impact consumer prices.

Negotiations Ongoing: Discussions between the government and the World Bank are still in progress, and the final outcome concerning the tax remains uncertain.

Wider Industry Implications:

The planned tax reforms under the ARMOR program extend beyond telecom, potentially affecting:

Banking Sector: Potential introduction of an Electronic Money Transfer (EMT) levy on electronic transactions. (Committee of Bankers to be involved)

Manufacturing: Increased excise duties on alcoholic beverages, tobacco products, and sugar-sweetened beverages. (Manufacturers Association of Nigeria (MAN) to be involved)

Importers: New fiscal policies impacting import activities. (Association of Nigeria Customs Agents (ANCLA) to be involved)

Automobile Industry: Potential green taxes on high-