The Federal Government has ruled out plans to introduce new taxes on telecommunications services and petroleum products following recommendations contained in the International Monetary Fund (IMF) Article IV Consultation Report on Nigeria.
The clarification was issued by Maryann Duke, Senior Special Assistant, Communications and Press Secretary to the Minister of Finance and Coordinating Minister of the Economy.
The statement followed reports suggesting that Nigeria may introduce additional taxes after the IMF recommended extending Value Added Tax (VAT) to fuel products and applying excise duties on telecommunications services to improve revenue generation, fund development and increase social spending.
The government said the IMF recommendations are advisory and do not represent approved policies, adding that any tax changes would only be implemented through established legal and institutional processes.
What they are saying
The Federal Government said reports suggesting that it has adopted or plans to introduce new taxes on telecom services and petroleum products are inaccurate and do not reflect its position.
- “The Federal Government is not considering the introduction of any new taxes on telecommunications services or petroleum products.”
- “The IMF Article IV Consultation Report contains the Fund’s assessments and policy recommendations for consideration by the relevant country. Such recommendations do not constitute decisions of the government of Nigeria, nor are they binding on the government.”
- “Policy decisions are introduced through established constitutional, legislative, and institutional processes, taking into account national priorities and prevailing economic conditions.”
The government clarified that the VAT waiver currently applicable to fuel remains in place and has not been withdrawn.
The government added that it remains focused on improving revenue administration, expanding economic activity, eliminating inefficiencies and creating a more competitive environment for investment and job creation rather than increasing the tax burden on citizens.
More insight
The government stated that although existing legislation provides for a fuel surcharge, such a measure would require a specific ministerial order and publication in the Official Gazette before implementation.
The Federal Government said no such action is currently being considered.
It stated that suspended taxes have helped moderate domestic fuel prices below international averages and neighbouring countries, providing some relief from global energy market disruptions.
The government said the telecommunications excise duty introduced before 2023 has been repealed under the new tax laws and is no longer applicable.
The statement advised the public, media organisations, businesses and other stakeholders to disregard reports suggesting that new taxes on telecom services and petroleum products are being introduced.
What you should know
The clarification followed concerns raised after the IMF’s latest Article IV Consultation Report on Nigeria, which included recommendations on revenue mobilisation and fiscal reforms.
- The IMF had suggested that Nigeria could consider extending VAT to fuel products and introducing excise duties on telecommunications services to raise additional revenue.
- The Alliance for Economic Research and Ethics LTD/GTE criticised the recommendations, warning that additional taxes could worsen cost-of-living pressures for households and businesses.
- The group acknowledged Nigeria’s revenue challenges but argued that introducing new taxes at a time of elevated inflation and rising living costs could have negative social and economic consequences.
The Federal Government said future tax policy changes, where necessary, will be communicated through official channels and implemented in line with legal requirements and due process.