By Abdullahi Mukhtar Algasgaini
The World Bank has advised the Federal Government of Nigeria to impose higher excise duties on harmful goods, including alcohol, tobacco, and sugar-sweetened beverages, as a key condition before approving a $750 million loan.
The recommendation is part of broader measures aimed at boosting non-oil revenue and reducing Nigeria’s reliance on petroleum earnings.
The World Bank believes that increasing taxes on these products will help improve public health by discouraging excessive consumption while generating additional government income for development projects.
According to the World Bank, the proposed tax hike will:
1 Enhance public health by reducing the consumption of harmful products.
2 Increase government revenue for critical infrastructure and social programs.
3 Support economic diversification by strengthening non-oil sectors.
This suggestion comes at a time when Nigeria’s economy faces significant pressure, including rising debt, inflation, and declining oil revenues.
The move aligns with global efforts to curb health risks associated with tobacco, alcohol, and sugary drinks while ensuring sustainable economic growth.
The Federal Government is expected to issue an executive order to implement the new tax policy as part of the loan agreement.
If approved, the measure could mark a major shift in Nigeria’s fiscal strategy, balancing public health concerns with economic recovery efforts.