Nigeria implements 5% tax on voice calls, mobile data and text messages

To improve Nigeria’s revenue flow and ease a mounting fiscal crisis, Finance Minister Zainab Ahmed announced the implementation of a 5 percent tax on voice calls, mobile data and text messages. The implementation of the tax highlights the government’s strained financial picture. Nigeria is spending more on its debt servicing costs than it brings in revenue. The statement by Ahmed, however, did not say when the collections of the levy will begin — this tax is in addition to the current 7.5 percent value added tax on calls and data. While the tax may improve revenue flows to some degree, there are concerns it could slow the expansion of one of the fastest-growing sectors.