Citing the rising cost of operations in the mobile industry in Nigeria, Communications Minister Isa Pantami has suspended the implementation of a new telecommunications tax meant to help reduce the countryโs budget deficit that is expected to reach a record next year.
This month, the government proposed a budget of NGN19.8trn (US$45.6bn) for next year, with 63 percent of the spending plan to be funded through debt. The expected shortfall is about three times the expected government revenue for the period and 5.5 percent of GDP โ well above the 3 percent legal limit. Nigeria has been seeking ways to boost income amid falling crude oil production, rising fuel subsidy costs, and low revenue, and the mobile tax was one avenue.
