The administration of President Bola Tinubu signed a $750 million loan agreement with the World Bank under the Accelerating Resource Mobilisation Reforms (ARMOR) Program-for-Results for Nigeria, with key components of the programme linked to increasing government revenue through new taxes and levies.
The World Bank approved the loan on June 14, 2024, while the final disbursement agreement with the Nigerian government was concluded five days later.
According to programme documents reviewed by SaharaReporters, Nigeria had already accessed $280.551 million from the approved facility as of the time of the report.
The documents indicated that about $343 million is expected to be released by the end of 2026, while the full $750 million loan is projected to be disbursed by 2028.
However, details of the ARMOR programme show that a major focus of the agreement is the implementation of revenue mobilisation reforms, including the introduction of additional taxes and levies targeting different sectors of the economy.
Information published on the World Bank’s website stated that the programme includes “revenue policy measures” such as increasing health-related taxes on tobacco and alcohol, as well as introducing taxes on online betting and gambling activities.
The programme also requires Nigeria to implement new excise duties on telecommunications services, introduce green taxes through levies on vehicles and single-use plastics, and enforce an electronic money transfer levy.
The implementation of some of these measures has already begun under the Tinubu administration.
Barely three months after the loan agreement was signed, fintech company OPay announced a N50 charge on electronic transfers of N10,000 and above into personal and business accounts.
In a notice issued to customers, the company said the charge, which took effect on September 9, 2024, was introduced in compliance with regulations from the Federal Inland Revenue Service.
OPay clarified that it was not benefiting from the charge, stating that the money was being remitted entirely to the Federal Government.
“OPay does not benefit from these charges in any way as it is directed entirely to the federal government,” the company said in the notice.
The electronic money transfer levy was later adopted more broadly, with commercial banks beginning to apply a N50 stamp duty on electronic transfers of N10,000 and above from January 1, 2026, following the implementation of new tax legislation.
The levy, also known as the Electronic Money Transfer Levy (EMTL), is a one-time charge imposed on electronic receipts or transfers of N10,000 and above into accounts held with commercial banks and other financial institutions.
In addition, the Federal Government introduced a green tax surcharge on motor vehicles as part of its 2026 fiscal policy measures.
According to Reuters, the levy applies a 2 percent surcharge on vehicles with engine capacities between 2,000cc and 3,999cc, while vehicles with engines of 4,000cc and above attract a 4 percent charge.
The government said the vehicle levy forms part of broader fiscal reforms approved by President Tinubu, alongside adjustments to import tariffs, changes to excise duties and the adoption of the ECOWAS Common External Tariff.
The tax reforms have generated widespread debate, with critics expressing concerns over the increasing financial burden on citizens and businesses amid economic hardship.
However, the Tinubu administration has repeatedly defended its revenue policies, arguing that the reforms are necessary to strengthen government finances, improve public services and support long-term economic development.
The ARMOR programme represents one of the World Bank’s major financial interventions in Nigeria’s fiscal reform efforts, with the government expected to meet agreed revenue mobilisation targets before accessing further disbursements.