The Federal government is planning to introduce a new excise duty on betting and lotteries companies in an effort to boost tax revenues.
Additionally, the government is considering implementing a green surcharge on imported vehicles as a means to generate approximately N2.6 trillion in net taxes through Nigerian Customs.
These proposals were outlined in the recently released Medium Term Expenditure Framework (MTEF), which was made public by the budget office and obtained.
The Nigerian betting industry has seen significant growth, with a report from May 2023 indicating that the sports betting market in Nigeria is valued at $2 billion, featuring around 60 million daily bettors aged 18 to 50.
Betting has become a widespread activity, with approximately N3,000 wagered each day, equating to an annual total of N730 billion.
Prominent companies in this sector include Sportybet, Betking, Bet9ja, and various others operating online.
In this document, the Federal government has unveiled several strategies to enhance non-oil revenue receipts.
The government aims to diversify non-oil revenue sources by exploring new opportunities and revitalizing previously untapped revenue streams.
Some of the initiatives to increase revenue from customers include:
- The introduction of a 2.5 percent export charge on all imported goods intended for export.
- The implementation of a series of Import Adjustment Taxes (IAT) with additional levies imposed on 172 tariff lines in line with the existing ECOWAS Common External Tariff (CET).
- The automation of processes at airports and ports to streamline and enhance efficiency.
In a separate development, the Federal government is encouraging Nigerians to invest in government bonds, offering an attractive interest rate of up to 12%.
These bonds are available to all Nigerians, and the repayment dates have been set for 2026.
The government intends to utilize the proceeds from these bonds to address critical needs while providing an opportunity for Nigerians to save and earn returns on their investments.
