The Federal Government is pressing ahead with critical tax reforms not just to boost tax revenue and efficiency but also to meet the requirements for a $750m loan from the World Bank.
This loan project is a part of the broader $2.25bn approved by the World Bank for Nigeria on June 13, 2024, to bolster Nigeria’s economic stability and support its vulnerable populations.
The other second part of the loan package was for the Nigeria Reforms for Economic Stabilisation to Enable Transformation, Development Policy Financing Programme project.
For the second loan, The PUNCH earlier reported that the Federal Government had obtained $751.88m out of the approved $1.5bn so far.
However, there has yet to be a disbursement for the first loan of $750m. PUNCH Online observed that disbursement for the first loan is tied to specific fiscal and governance conditions under the Accelerating Resource Mobilisation Reforms programme.
According to the Disbursement Linked Indicators set out in the loan agreement, the loan will only be released upon achieving measurable progress in key areas.
These include raising VAT collection through improved regulations, increasing excise taxes on health and environmental products, and boosting corporate tax compliance through enhanced digital infrastructure.
