FG Dismisses Reports of New Taxes on Telecoms, Petroleum Products

ABUJA — The Federal Government on Wednesday dismissed reports suggesting it had adopted or was considering the introduction of 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 said the reports misrepresented the contents of the IMF report and did not reflect its policy direction, insisting that no new taxes were being planned for either sector.

In a statement issued by Efe Ovuakporie, Head of the Information and Public Relations Unit of the Federal Ministry of Finance, the government stressed that recommendations contained in the IMF report were advisory and not binding on Nigeria.

“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 followed reports that the IMF had recommended the introduction of taxes on fuel products and telecommunications services as part of broader measures aimed at boosting government revenue and improving fiscal sustainability.

The IMF’s recommendations formed part of a wider package of proposals intended to create fiscal space for development spending and social interventions.

However, the Federal Government said any decision on taxation would be made through established constitutional and legislative processes and would reflect national priorities and prevailing economic conditions.

“Decisions on tax matters are taken through established constitutional and legislative processes and are guided by national priorities and prevailing economic realities,” the ministry stated.

Fuel Waiver Remains in Place

The government also clarified that the Value Added Tax waiver on petroleum products remains in force and has not been withdrawn.

According to the ministry, while existing legislation provides for a fuel surcharge, such a measure can only take effect through a ministerial order and publication in the Official Gazette.

“It also noted that although existing legislation provides for a fuel surcharge, such a measure can only take effect through a ministerial order and publication in the Official Gazette. No such process is under consideration,” the statement said.

The government argued that retaining the waiver and suspending related charges had helped shield households and businesses from the effects of volatility in global energy markets while maintaining relative stability in domestic fuel prices.

“The continued suspension of these charges has helped cushion the effect of global energy price fluctuations on households and businesses while keeping domestic fuel prices relatively stable,” the ministry added.

Telecoms Excise Duty Already Repealed

On the telecommunications sector, the government said the excise duty introduced before 2023 had already been repealed under recently enacted tax laws and was no longer applicable.

“The Government further clarified that the telecommunications excise duty introduced before 2023 has been repealed under the new tax laws and is therefore no longer applicable,” the statement said.

The ministry urged the public to disregard reports suggesting that fresh taxes were being proposed for telecommunications services or petroleum products.

“Against this backdrop, reports claiming that new taxes are being planned for telecommunications services or petroleum products are not factual and should be disregarded,” it stated.

The Federal Government reiterated its commitment to reforms aimed at promoting economic growth, improving revenue administration and creating a more attractive environment for investment and job creation.

According to the ministry, the government’s focus remains on expanding economic activity, improving efficiency and blocking revenue leakages rather than imposing additional tax burdens on citizens.

“The emphasis remains on expanding economic activity, plugging leakages and improving efficiency rather than placing additional tax burdens on citizens,” the statement said.

The government also assured Nigerians that any future tax measures would be communicated through official channels and implemented in accordance with existing laws.

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A Lagos-based journalist with a passion for disseminating factual information and a deep appreciation for good music, good food, movies, and beautiful cars. He hopes to travel the world someday, documenting its beauty and diverse cultures through his storytelling.