The Federal Government has dismissed reports suggesting it plans to introduce new taxes on petroleum products and telecommunications services, clarifying that recommendations contained in the International Monetary Fund’s (IMF) latest Article IV Consultation Report do not constitute government policy.
The clarification came amid public concern following the IMF’s suggestion that Nigeria consider extending Value Added Tax (VAT) to fuel products and reintroducing excise duties on telecommunications services as part of efforts to boost government revenue.
In a statement issued by Maryann Duke, Senior Special Assistant on Communications and Press to the Minister of Finance and Coordinating Minister of the Economy, the government stressed that no such measures are under consideration.
According to the statement, the IMF’s recommendations are advisory in nature and are not binding on Nigeria.
The government emphasized that any changes to tax policy would only emerge through constitutional, legislative and institutional processes, taking into account the country’s economic realities and national priorities.
“The Federal Government is not considering the introduction of any new taxes on telecommunications services or petroleum products,” the statement said.
Officials noted that reports suggesting otherwise were inaccurate and did not reflect the position of the government.
The government further clarified that the existing VAT waiver on petroleum products remains in force and has not been withdrawn.
It also explained that although current laws provide room for a fuel surcharge, such a measure would require a specific ministerial directive and publication in the Official Gazette before it could take effect.
According to the government, no such action is being contemplated.
The administration argued that the suspension of certain taxes has helped keep domestic fuel prices below levels seen in several neighbouring countries despite volatility in global energy markets.
On telecommunications services, the government pointed out that the controversial excise duty introduced before 2023 has already been removed under the country’s new tax framework.
As a result, there are currently no plans to revive the levy.
The clarification will likely be welcomed by consumers and businesses still grappling with rising operating costs and recent increases in telecommunications tariffs.
Rather than imposing fresh taxes, the Federal Government said its strategy remains focused on improving tax administration, expanding economic activity, plugging revenue leakages and creating a more investment-friendly environment.
Officials argued that sustainable revenue growth should come from economic expansion and improved compliance rather than additional burdens on citizens and businesses already facing inflationary pressures.
The controversy followed the release of the IMF’s Article IV Consultation Report, which urged Nigeria to consider broader tax reforms to strengthen public finances.
Among the recommendations were the extension of VAT to fuel products and the introduction of excise duties on telecommunications services.
The proposals immediately drew criticism from economists, business groups and consumer advocates who warned that such measures could worsen the cost-of-living crisis facing many Nigerians.
Several analysts argued that imposing new taxes on fuel and telecommunications—two essential services—would raise production costs, fuel inflation and reduce disposable income at a time when households are already under significant economic pressure.
