Tinubu's $750M World Bank Loan Linked to New Taxes

President Bola Tinubu's administration has linked a $750 million loan from the World Bank to the introduction of new tax measures aimed at increasing Nigeria's domestic revenue. The loan was approved by the World Bank on June 14, 2024, with disbursements expected to total $750 million by 2028, contingent upon the implementation of agreed reform milestones.

Key components of the reform program include the introduction of various taxes such as health-related taxes on tobacco and alcohol, an electronic money transfer levy, and a green tax on vehicles. The electronic money transfer levy, which charges a fee for transactions above 10,000 naira, was implemented by fintech company Opai starting September 9, 2024.

Additionally, a green tax surcharge on motor vehicles is set to be announced in April 2026, with implementation commencing on July 1, 2026. The Tinubu administration faces criticism for introducing new taxes amid rising living costs but defends these reforms as necessary for improving domestic revenue mobilization.