The federal government has debunked reports suggesting that it has adopted or is considering new taxes on telecommunications services and petroleum products following the publication of the International Monetary Fund (IMF) Article IV Consultation Report on Nigeria.
The Head, Information and Public Relations Unit of the Ministry of Finance, Efe Ovuakporie, in a statement on Wednesday, said the reports misrepresent the content of the IMF report and do not reflect its policy direction.
The IMF, in its 2026 Article IV consultation report on Nigeria, released on 9 June, recommended that Nigeria may need to extend value-added tax (VAT) to fuel products and introduce excise duties on telecommunications services to raise government revenue and fund development and social spending.
The Washington-based lender said recent tax reforms may not be enough to sustain the government’s spending plans over the medium term.
“Further tax policy changes will likely be needed–such as increasing the VAT rate, extending VAT to fuel products, rationalising tax expenditures in particular VAT exemptions on extractive industries and some customs duties, and introducing telecom excises — to complement administrative gains,” the IMF said.
The recommendations sparked concern among economic experts, who urged the federal government to caution against raising VAT or taking expensive foreign loans.
On Wednesday, Ms Ovuakporie said the IMF Article IV Consultation report contains the fund’s assessment of Nigeria’s economy as well as recommendations for consideration by the authorities.
She noted that those recommendations do not amount to government policy and are not binding on Nigeria.
“Decisions on tax matters are taken through established constitutional and legislative processes and are guided by national priorities and prevailing economic realities,’ she said.
The government clarified that the Value Added Tax (VAT) waiver on petroleum products remains in place and has not been withdrawn. 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 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 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.
“Against this backdrop, reports claiming that new taxes are being planned for telecommunications services or petroleum products are not factual and should be disregarded,” the statement said.
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The federal government said it remains focused on reforms that promote economic growth, improve revenue administration and create a more competitive environment for investment and job creation.
“The emphasis remains on expanding economic activity, plugging leakages and improving efficiency rather than placing additional tax burdens on citizens.
“Any future tax measures will be announced through official channels and implemented in line with the law.”
Value Added Tax (VAT) is a consumption tax managed by the Nigeria Revenue Service (NRS), previously known as the Federal Inland Revenue Service (FIRS).
Introduced in 1993 via VAT Act No. 102, it replaced Sales Tax, which had been operational since 1986. Initially set at 5 per cent, VAT was bumped to 7.5 per cent in January 2020 after the late President Muhammadu Buhari signed the Finance Act 2020 into law.
