- Country aims to meet obligations to African Development Bank, World Bank
According to Zawya article published on December 26, 2022, the Nigerian government plans to introduce a 0.5 percent levy on imported goods to raise funds to meet its obligations to the African Development Bank, World Bank and other multilateral organisations, The Punch newspaper reported.
The new levy was introduced into the 2022 finance bill under Sector 13 for Customs, Excise, Tariff, etc. (Consolidation) Act.
The government said in the document that the amendment was essential to ensure certainty and sustainability of funding of the African Union and other key multilateral development institutions.
The move is aimed at servicing the government’s debt obligations amid revenue challenges, the newspaper said.
Last month, Fitch downgraded Nigeria’s rating to ‘B-’ with a stable outlook, partly due to deterioration in its debt servicing.
Reuters reported that total public debt climbed 3% to $103.3 billion in the second quarter, driven by local borrowing.
The budget deficit to revenue ratio hit 74% this year and could rise to 111% next year, the news agency said, citing finance ministry data.
