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The World Bank has asked the Federal Government to issue a presidential order raising excise duties on “sin goods” such as alcohol, tobacco, and sugary drinks as a key requirement under the $750m loan granted to Nigeria to reform its non-oil revenue mobilisation efforts.
This requirement was captured in the World Bank’s latest Implementation Status and Results Report for the “Accelerating Resource Mobilisation Reforms Programme-for-Results”, which became effective on October 14, 2024, and is expected to close by November 2028.
A copy of the report was obtained by The PUNCH from the bank’s website. In its latest implementation review for the Accelerating Resource Mobilisation Reforms Programme, the bank stated that the disbursement of at least $10m is tied to the issuance of this presidential directive.
The reform programme aims to raise Nigeria’s non-oil revenues while safeguarding earnings from the oil and gas sector. As of May 2025, Nigeria has only received $1.88m, representing 0.25 per cent of the total loan amount.
However, six disbursement-linked results worth $235m have reportedly been achieved and are awaiting verification. The bank noted that “a Presidential order increasing excises on ‘sin’ goods, in place,” is the formal verification required to unlock the fund attached to this result, while noting that excise rates on sin goods are very low.
The PUNCH observed that Nigeria currently imposes excise duties on tobacco, alcoholic, and non-alcoholic beverages, with recent increases introduced from June 1, 2022. Tobacco products attract a 30 per cent ad valorem tax plus a specific rate rising annually from N4.2 per stick in 2022 to N5.2 in 2024.
Alcoholic beverages such as beer, wines, and spirits are taxed through specific rates per litre, increasing each year through 2024, alongside a 20 per cent ad valorem rate for wines and spirits. A N10 per litre duty applies to non-alcoholic and sweetened beverages, while a five per cent excise on telecom services was introduced but suspended.
Source: punchng.com
