Business
FG Targets N250bn From Excise Duty
The Federal Government has projected to raise the sum of N250.09billion from excise duty in 2023, findings has revealed.
According to a document obtained on 2023 fiscal framework, the Federal Government targeted N98.53billion from excise duty in 2021 and N161.7billion in 2022.
This shows that the government revenue target from excise duty rose by 153.82 per cent in two years and 54.66 per cent in one year.
It was reported in November last year that the Federal Government plans to introduce more taxes and cut down on tax incentives in 2023 through the proposed 2022 Finance Bill.
However, experts and organisations have kicked against the government introducing more excise tax.
The carbonated soft drinks Group of the Manufacturers Association of Nigeria (MAN) in December, last year, said the Federal Government’s claim to add a 20 per cent Ad-Valorem Excise Tax on carbonated soft drinks in a bid to raise taxes for investment into health is misleading.
According to the group, the cost of carbonated drinks will go higher if there is an additional excise tax and this has multiplier effects.
It stated that while controlling sugar consumption is essential, raising taxes is not the solution.
The Centre for the Promotion of Private Enterprises(CPPE) recently said the imposition of excise duty on all services will affect the business community negatively.
The CPPE CEO, Muda Yusuf, noted that the provisions of the new finance bill are too broad, inexact and wide-ranging and “makes the business community very vulnerable.
“There is no jurisdiction around the world where all services are liable to excise duty. Excise duties are typically specific and selective, and often imposed to disincentivise consumption or production of particular product groups”.
Expressing concerns over the heavy taxation burden on companies and the service sector, Yusuf stated, “We are concerned that companies in the service sector are already paying huge taxes in the form of company tax which is currently at 30per cent, tertiary education tax at 2.5per cent, NITDA levy at one per cent, NASENI levy at 0.25per cent, Police Trust Fund Levy at 0.005per cent and withholding tax on profit distribution at 10 per cent.
“All the taxes are percentages of company profit. Additionally, there are numerous taxes and levies imposed by state governments”.
Edun made the call while speaking at the 2025 Fellowship Investiture of the Chartered Institute of Bankers of Nigeria (CIBN) in Lagos, where he reaffirmed the federal government’s commitment to sustaining ongoing reforms and expanding access to finance as key drivers of economic growth beyond four per cent.
“We all know that monetary policy under Cardoso has stabilised the financial system in a most commendable way. Of course, it is a team effort, and those eye-watering interest rates have to be paid by the fiscal side. But the fight against inflation is one we all have to participate in,” he said.
The minister stressed the need for banks to broaden credit access and finance innovation-driven enterprises that can create jobs for young Nigerians.
“The finance and banking industry has more work to do because we must finance their ideas, deepen the capital and credit markets down to SMEs. They should not have to go to Silicon Valley,” he said.
The minister who described the private sector as the engine of growth, said the government’s reform agenda aims to create an enabling environment where businesses can thrive, access funding, and contribute meaningfully to job creation.
The facility, known as the Nigeria Actions for Investment and Jobs Acceleration (P512892), is a Development Policy Financing (DPF) operation scheduled for World Bank Board consideration on December 16, 2025.
According to the Bank’s concept note , the financing would comprise $500m in International Development Association (IDA) credit and $500m in International Bank for Reconstruction and Development (IBRD) loan.
If approved, it would be the second-largest single loan Nigeria has received from the World Bank under President Bola Tinubu’s administration, following the $1.5 billion facility granted in June 2024 under the Reforms for Economic Stabilisation to Enable Transformation (RESET) initiative.
The World Bank said the new programme aims to support Nigeria’s shift from short-term macroeconomic stabilisation to sustainable, private sector–led growth.
“The proposed Development Policy Financing (DPF) supports Nigeria’s pivot from stabilization to inclusive growth and job creation. Structured as a two-tranche standalone operation of US$1.0 billion (US$500 million IDA credit and US$500 million IBRD loan), it seeks to catalyse private sector–led investment by expanding access to credit, deepening capital markets and digital services, easing inflationary pressures, and promoting export diversification,” the document read.
The document further stated that Nigeria’s private sector credit-to-GDP ratio stood at only 21.3 per cent in 2024, significantly below that of emerging-market peers, while capital markets remain shallow, with sovereign securities dominating the bond market.
To address these weaknesses, the DPF will support the implementation of the Investment and Securities Act 2025, operationalisation of credit-enhancement facilities, and introduction of a comprehensive Central Bank of Nigeria rulebook to strengthen risk-based regulation and consumer protection.
The operation also includes measures to deepen digital inclusion through the passage of the National Digital Economy and E-Governance Bill 2025, which will establish a legal framework for electronic transactions, authentication services, and digital records.
Beyond the financial and digital sectors, the programme targets reforms to lower production and living costs by tackling Nigeria’s restrictive trade regime. High tariffs and import bans have long driven up consumer prices and constrained competitiveness, particularly for manufacturers and farmers.
Under the proposed reforms, Nigeria would adopt AfCFTA tariff concessions, rationalise import restrictions, and simplify agricultural seed certification to increase the supply of high-quality varieties for maize, rice, and soybeans. The World Bank projects that these measures will help reduce food inflation, attract private investment, and enhance export potential.
The operation is part of a broader World Bank FY26 package that includes three complementary projects—Fostering Inclusive Finance for MSMEs (FINCLUDE), Building Resilient Digital Infrastructure for Growth (BRIDGE), and Nigeria Sustainable Agricultural Value-Chains for Growth (AGROW)—all focused on expanding access to finance, strengthening institutions, and mobilising private capital.