FG Rules Out Fuel, Telecom Taxes Despite IMF Recommendation

The Federal Government has dismissed reports suggesting it plans to introduce new taxes on telecommunications services and petroleum products following recommendations contained in the International Monetary Fund’s latest Article IV Consultation Report on Nigeria.

The government clarified that the recommendations contained in the IMF report are advisory in nature and do not constitute official policy, stressing that no new taxes are being considered for either sector.

This was contained in a statement issued on Wednesday by the Federal Ministry of Finance and signed by the Head of the Information and Public Relations Unit, Efe Ovuakporie.

According to the ministry, reports linking the government to proposed taxes on fuel and telecom services misrepresented the contents of the IMF report and created a false impression about government policy.

“The IMF Article IV Consultation Report contains the Fund’s assessment of Nigeria’s economy as well as recommendations for consideration by the authorities. Those recommendations do not amount to government policy and are not binding on Nigeria,” the statement said.

The clarification follows recent discussions generated by the IMF report, which proposed several revenue-enhancing measures aimed at improving fiscal sustainability and boosting government earnings.

While the IMF suggested the introduction of taxes on fuel products and telecommunications services as part of broader reforms, the Federal Government insisted that taxation decisions can only be made through constitutional and legislative processes.

The ministry stated that any future tax policy would be guided by national priorities, economic realities and the interests of Nigerians.

The government further clarified that the Value Added Tax waiver currently applicable to petroleum products remains in force and has not been withdrawn.

It also explained that although existing legislation provides for a fuel surcharge mechanism, such a measure can only become operational through a ministerial order and publication in the Official Gazette, adding that no such process is being considered.

On telecommunications services, the government noted that the excise duty previously introduced on the sector had already been repealed under the country’s new tax laws and is no longer applicable.

The ministry urged Nigerians to disregard reports suggesting fresh taxes were imminent, reiterating that its focus remains on promoting economic growth, improving revenue administration, attracting investment and creating jobs.

It added that future fiscal measures, if necessary, would be communicated through official government channels and implemented strictly in accordance with the law.