FG breaks silence on IMF tax proposals, rules out new fuel, telecom levies

The Federal Government has dismissed reports suggesting that it has approved or is considering the introduction of new taxes on telecommunications services and petroleum products, clarifying that recommendations contained in the International Monetary Fund (IMF) Article IV Consultation Report do not constitute official government policy.

The clarification came amid widespread reports that the IMF had recommended extending Value Added Tax (VAT) to petroleum products and imposing excise duties on telecommunications services as part of measures to boost government revenue, finance development projects, and support social spending.

In a statement issued on Wednesday by Efe Ovuakporie, Head of the Information and Public Relations Unit of the Federal Ministry of Finance, the government said the reports were based on a misinterpretation of the IMF’s findings and recommendations.

According to the ministry, the IMF Article IV Consultation Report represents the Fund’s assessment of Nigeria’s economic conditions and contains policy suggestions for consideration by the authorities, but such recommendations are neither binding nor automatically adopted by the government.

“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 statement said.

“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.”

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The Federal Government stressed that no decision has been taken to impose fresh taxes on telecommunications services or petroleum products, contrary to claims circulating in sections of the media.

Addressing concerns over fuel taxation, the ministry reiterated that the existing VAT waiver on petroleum products remains in force and has not been withdrawn.

It further explained that while current legislation provides for the possibility of a fuel surcharge, such a measure cannot be implemented automatically and would require a formal ministerial order as well as publication in the Official Gazette before taking effect.

The government noted that maintaining the suspension of such charges has played an important role in protecting consumers and businesses from the impact of volatile global energy 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 statement added.

The ministry also clarified the status of excise duties on telecommunications services, noting that the telecoms excise regime introduced before 2023 has already been repealed under Nigeria’s new tax framework and is no longer applicable.

As a result, reports claiming that the government is planning to reintroduce or impose fresh taxes on telecommunications services are inaccurate, according to the ministry.

“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 emphasized.

The government reaffirmed its commitment to implementing economic reforms aimed at stimulating growth, strengthening revenue administration, and improving the business environment without placing additional burdens on citizens.

According to the ministry, the administration’s fiscal strategy is focused on broadening economic activity, enhancing tax compliance, reducing leakages, and improving efficiency in public revenue management rather than introducing new taxes that could increase the cost of living.

“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 further assured investors, businesses, and the public that any future tax policy changes would be communicated transparently through official channels and implemented strictly in accordance with legal and constitutional procedures.

“Any future tax measures will be announced through official channels and implemented in line with the law,” the statement concluded.

The clarification comes as Nigeria continues to pursue fiscal reforms aimed at strengthening public finances while balancing the need to support economic growth, attract investment, and protect households from rising living costs.