Cash-Strapped Nigeria Implements 5% Tax on Mobile Services

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Street vendors display used mobile phone handsets for sale at Jagwal Electronics Market in Maiduguri, Nigeria.
Street vendors display used mobile phone handsets for sale at Jagwal Electronics Market in Maiduguri, Nigeria.

Nigeria, Africa’s biggest wireless market, is moving ahead with a proposed 5% tax on voice calls, mobile data and text messages to tackle a mounting fiscal crisis.

Finance Minister Zainab Ahmed announced the implementation of the tax, delayed since last year, in an emailed statement that highlighted the government’s strained financial picture. As of April, Africa’s biggest crude producer spends more on debt servicing.

Source: Bloomberg