In response to suggestions made in the most recent IMF Article IV Consultation Report on Nigeria, the Federal Government on Wednesday denied rumors that it had implemented or was thinking of implementing new levies on petroleum goods and telecoms services.
The administration insisted that no new taxes were planned for the telecom or petroleum sectors, claiming that the reports distorted the contents of the IMF study and did not reflect its policy agenda.
The government emphasized that the recommendations in the IMF report were not legally binding on Nigeria and should not be construed as official government policy in a statement signed by Efe Ovuakporie, Head of Information and Public Relations Unit of the Federal Ministry of Finance.
Following the release of the International Monetary Fund Article IV Consultation Report on Nigeria, “the government has dismissed reports suggesting that it has adopted or is considering new taxes on telecommunications services and petroleum products,” the statement stated.
The explanation was made a few days after the IMF suggested many revenue-boosting initiatives in its Article IV report on Nigeria in an attempt to increase government revenue and enhance fiscal sustainability.
It was reported that the IMF proposed putting taxes on gasoline goods and telecommunications services in Nigeria as part of broader steps to enhance government revenue and provide budgetary space for development spending and social interventions.
The Federal Government, however, insisted that taxation decisions could only be determined through legislative and constitutional procedures, and that they would be influenced by current economic conditions and national priorities.
“The IMF Article IV Consultation Report contains the Fund’s assessment of Nigeria’s economy as well as recommendations for consideration by the authorities,” the ministry states. These suggestions are not legally binding on Nigeria and do not constitute government policy.
“Decisions on tax matters are taken through established constitutional and legislative processes and are guided by national priorities and prevailing economic realities,” the statement continued.
Additionally, the government made it clear that the petroleum product Value Added Tax waiver was still in effect and had not been revoked.
The statement claims that even while a gasoline fee is allowed by current law, it can only be implemented by a ministerial order and published in the Official Gazette.
It also pointed out that while gasoline surcharges are allowed by current law, they may only be implemented by a ministerial order and published in the Official Gazette. The ministry declared that no such procedure is being considered.
The administration contended that maintaining the waiver and halting associated fees has supported relative stability in domestic gasoline prices while protecting people and companies from the effects of volatility in the global energy market.
It further stated, “The ongoing suspension of these charges has helped keep domestic fuel prices relatively stable while mitigating the impact of global energy price fluctuations on households and businesses.”
Regarding the telecom industry, the government stated that the excise tax that was imposed prior to 2023 had already been eliminated by the nation’s recently passed tax legislation and was therefore no longer relevant.
The statement added, “The Government further clarified that the telecommunications excise duty introduced prior to 2023 has been repealed under the new tax laws and is therefore no longer applicable.”
As a result, the ministry advised the public to ignore rumors that new taxes were being proposed for petroleum products or telecommunications services.
In light of this, it said, “reports claiming that new taxes are being planned for petroleum products or telecommunications services are not factual and should be disregarded.”
Instead of raising taxes on residents, the government reaffirmed its commitment to enacting reforms targeted at boosting economic growth, enhancing revenue management, and luring investment.
“Reforms that boost economic growth, enhance revenue management, and foster a more competitive environment for investment and job creation continue to be the Federal Government’s primary focus. Instead of burdening citizens with more taxes, the focus is still on increasing economic activity, closing leaks, and increasing efficiency, the statement continued.
Nigerians were further reassured that any upcoming tax measures would be publicized through official means and carried out in compliance with the law.
