NG Accelerating Resource Mobilization Reforms PforR

The development objective of the Accelerating Resource Mobilization Reforms (ARMOR) Program for Results for Nigeria is to raise non-oil revenues and safeguard oil and gas revenues. The government’s ARMOR program, which was approved by the Federal Executive Council (FEC) in June 2022 is a key component of the National Development Plan 2021-2025 and has the objective to boost tax revenues, develop the tax and customs administrations, and improve governance and transparency in the oil and gas sector, to enhance the fiscal space for social protection spending. The ARMOR program contains revenue policy measures such as, raising pro-health taxes on tobacco, and alcohol, introducing taxes on online betting and gambling, a new excise on telecommunication services, green taxes in the form of excises on vehicles and single-use plastics, as well as the implementation of an electronic money transfer levy. The program also aims to reform tax expenditures, and lower revenue foregone through tax exemptions and incentive programs. The program also includes tax administrative improvements and the modernization of Federal Inland Revenue Service (FIRS) and Nigeria Customs Service (NCS), including through greater use of automated and simple procedures allowing businesses who voluntarily comply to do so easily. The program supports trade facilitation by introducing more efficient customs processing and lowering the administrative costs and time of collecting duties and taxes on imported goods and doing so in a fair, transparent, and predictable manner. Finally, the program aims to safeguard oil and gas revenues transferred to the federal budget by increasing transparency and improving the governance of the oil and gas sector and removing fuel subsidies.