By Eshioromeh Sebastian
The Federal Government has firmly rejected the International Monetary Fund’s recent recommendations to impose new taxes on telecommunications services and petroleum products, describing the proposals as inconsistent with Nigeria’s current policy direction and economic realities.
In a statement issued Tuesday by Maryann Duke, Senior Special Assistant on Communications and Press Secretary to the Minister of Finance, the government said the IMF’s Article IV Consultation Report, which suggested extending VAT to fuel products and introducing telecom excise duties to boost revenue—had been misinterpreted by the public .
“The claims are inaccurate and do not reflect the position of the government. The Federal Government is not considering the introduction of any new taxes on telecommunications services or petroleum products,” Duke stated .
The government clarified that IMF recommendations are not binding on Nigeria and do not automatically translate into policy. Any tax decisions must pass through established constitutional and legislative processes, with due consideration for national priorities and prevailing economic conditions.
On fuel, the government confirmed that the VAT waiver remains in force and has not been withdrawn. While existing laws provide for a fuel surcharge, such a measure would require a specific ministerial order and publication in the Official Gazette—”no such action is being contemplated at this time”.
Similarly, the telecommunications excise duty introduced before 2023 has been repealed under the new tax laws and is no longer applicable .
The decision comes amid widespread opposition from Nigerian experts and civil society, who described the IMF’s advice as “ill-timed” given the country’s severe cost-of-living crisis.
Poverty has reached 63 percent, with about 27 million Nigerians facing food insecurity. The telecom sector already faces over 40 different taxes, with operators warning that additional levies would be passed to consumers already grappling with a 50 percent tariff hike approved in January 2025 .
The government reaffirmed its commitment to a growth-driven tax regime focused on revenue administration and economic expansion rather than increasing the tax burden on citizens .
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