Nigeria faces 10% VAT following oil crash
Nigeria is proposing to raise its VAT rate from 5% to 10% as it struggles to manage the losses on its key oil exports as the global price of oil tumbles. The 5% rate has been in place since the introduction of Value Added Tax in 1993. There are exemptions for basic foodstuffs and other essentials.
Nigeria is one of the world’s largest oil exporters relative to GDP. In the past six months, the price of oil has more than halved as the world faces excess supply and slowing economic growth, particularly in China.
Another country facing a VAT rise is Iran, which is facing similar deficit difficulties brought on by the fall in oil prices.