THE federal government has refuted claims that it is considering the introduction of new taxes on telecommunications services and petroleum products following recommendations contained in the International Monetary Fund’s (IMF) latest Article IV Consultation Report on Nigeria.
The clarification came after reports suggested that the IMF had advised Nigeria to expand Value Added Tax (VAT) coverage to include fuel products and impose excise duties on telecommunications services as part of efforts to boost government revenue and support development programmes.
In a statement issued today by the Ministry of Finance’s Head of Information and Public Relations, Efe Ovuakporie, the government said the reports misrepresented the contents of the IMF report and did not reflect its current policy position.
According to the ministry, the IMF report contains the institution’s assessment of Nigeria’s economy and policy recommendations for consideration, but such recommendations are not binding on the country.
The government stressed that decisions relating to taxation are made through constitutional and legislative processes and are guided by Nigeria’s economic priorities and prevailing realities.
It further clarified that the existing VAT exemption on petroleum products remains unchanged and has not been withdrawn.
The ministry also noted that while current legislation allows for a fuel surcharge, the implementation of such a charge would require a formal ministerial order and publication in the Official Gazette. It stated that no such process is being contemplated at this time.
Officials added that maintaining the suspension of these charges has helped lessen the impact of fluctuations in global energy prices on households and businesses while contributing to relative stability in domestic fuel prices.
The government also addressed concerns about telecommunications taxes, explaining that the excise duty introduced on telecom services before 2023 was repealed under recently enacted tax reforms and is therefore no longer in effect.
As a result, it described reports suggesting that new taxes are being planned for telecommunications services or petroleum products as inaccurate and urged the public to disregard them.
The federal government reiterated its commitment to economic reforms aimed at stimulating growth, improving revenue collection, attracting investment, and creating employment opportunities.
It emphasized that its priority remains expanding economic activity, eliminating revenue leakages, and improving efficiency rather than increasing the tax burden on citizens.
The statement added that any future tax measures would be communicated through official channels and implemented in accordance with existing laws.
