Pat Stevens/
The Federal Government has moved swiftly to douse growing public concern over the possibility of fresh taxes on fuel and telecommunications services, insisting that it has no plans to impose new levies despite recommendations contained in the International Monetary Fund’s latest assessment of Nigeria’s economy.
The clarification followed widespread reports that the IMF, in its 2026 Article IV Consultation Report on Nigeria, advised the government to broaden its tax base by extending Value Added Tax to fuel products and introducing excise duties on telecommunications services as part of efforts to boost revenue and create fiscal space for development spending.
In a statement issued on Wednesday, the Federal Ministry of Finance described suggestions that the government had adopted or was considering the IMF’s recommendations as inaccurate and misleading.
The ministry stressed that the IMF report merely contains policy advice and does not constitute government policy.
“The recommendations do not amount to government policy and are not binding on Nigeria,” the ministry said, adding that all tax decisions must pass through constitutional and legislative processes and be guided by national priorities and prevailing economic realities.
The government’s rebuttal comes amid heightened sensitivity over taxation and living costs following the removal of fuel subsidies, exchange rate reforms and persistent inflationary pressures that have squeezed household incomes across the country.
Any indication of new taxes on fuel or telecommunications services had triggered fears of higher transport costs, more expensive airtime and data charges, and a fresh wave of inflation.
Seeking to calm those fears, the government said the VAT waiver on petroleum products remains in force and has not been withdrawn.
It also clarified that while existing legislation provides for a fuel surcharge mechanism, such a measure can only take effect through a specific ministerial order and publication in the Official Gazette, neither of which is being contemplated.
On telecommunications services, the government noted that the excise duty introduced before 2023 has since been repealed under the country’s new tax laws and is no longer applicable.
It said claims that fresh taxes are being planned for the sector are “not factual and should be disregarded”.
The controversy was triggered by the IMF’s latest report, which argued that Nigeria may eventually require additional tax measures to strengthen public finances despite recent tax reforms.
The Fund suggested that options could include raising VAT, extending VAT to fuel products, rationalising tax exemptions and introducing telecoms excise duties.
However, it also cautioned that any such measures should take account of rising poverty and food insecurity and be accompanied by effective social protection programmes.
The recommendations immediately drew criticism from telecom subscribers and industry stakeholders, who argued that the sector is already burdened by multiple taxes and levies.
Consumer advocates warned that any additional charges would ultimately be passed on to millions of Nigerians through higher tariffs and data costs.
The Federal Government maintained that its focus remains on improving tax administration, plugging revenue leakages and expanding economic activity rather than imposing additional burdens on citizens.
It said any future tax measures would be announced through official channels and implemented strictly in accordance with the law.
The latest dispute underscores the delicate balancing act facing the Tinubu administration as it seeks to raise government revenue and sustain economic reforms without further aggravating the cost-of-living pressures confronting millions of Nigerians.
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