Investor Presentaiton

KEY MACRO-FISCAL POLICY RECOMMENDATIONS FOR THE NEXT SIX MONTHS TO KEEP SEIZING THE OPPORTUNITES To sustain and deepen FX policy reform • Remove the FX restrictions for the list of 43 items. • • Keep actively communicating and ensuring clarity about the new FX policy with the focus on a unified, market- reflective, transparently-determined rate. Reorient monetary policy operations towards achieving price stability, which will help to anchor the exchange rate. To tackle inflation Continue reducing subsidized CBN lending to medium and large firms. • End government borrowing from the CBN. Replace import and FX restrictions with tariffs that reflect the ECOWAS Common External Tariff. To build on the PMS reform and rebuild fiscal space Sustain the PMS subsidy removal: keep prices deregulated, foster fair competition and curb any commercial malpractice so that efficiency gains are passed onto consumers. • VAT: increase rate, while allowing for input tax credit on capital and services; remove exemptions on petrol products. Improve tax administration to ensure the collection of the newly introduced excises on telecommunication, single use plastics, and high-polluting vehicles. Adopt a data-driven approach to tax audit. ⚫ Link residential property with PIT returns. Introduce a simple turnover tax on SMEs at state level instead of various existing fees & levies. NIGERIA THE WORLD BANK IBRD⚫IDA WORLD BANK GROUP 33 33

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