The Federal Government has firmly denied reports suggesting that it plans to introduce fresh taxes on telecommunications services and petroleum products, stressing that recent recommendations made by the International Monetary Fund (IMF) do not represent official government policy.
In a statement issued on Wednesday by the Head of Information and Public Relations at the Federal Ministry of Finance, Efe Ovuakporie, the government said media reports linking it to proposed taxes on fuel and telecom services were misleading and based on a misinterpretation of the IMF’s latest Article IV Consultation Report on Nigeria.
According to the government, while the IMF offered a number of fiscal recommendations aimed at boosting revenue generation and strengthening public finances, such proposals remain advisory and are not binding on the country.
“The Government has dismissed 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 Article IV Consultation Report on Nigeria,” the statement said.
The clarification follows widespread discussions triggered by the IMF report, which recommended several revenue-raising measures, including taxes on petroleum products and telecommunications services, as part of broader efforts to improve fiscal sustainability and create additional funding for development programmes.
However, the Federal Government emphasized that taxation policies can only emerge through established legal and constitutional procedures and must reflect Nigeria’s economic 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. Those recommendations do not amount to government policy and are not binding on Nigeria,” the ministry stated.
It added, “Decisions on tax matters are taken through established constitutional and legislative processes and are guided by national priorities and prevailing economic realities.”
The government also moved to reassure Nigerians that existing tax relief measures in the petroleum sector remain intact, particularly the Value Added Tax (VAT) waiver on petroleum products.
While acknowledging that current laws contain provisions for a fuel surcharge, the ministry explained that such a levy cannot be implemented automatically and would require specific legal procedures before taking effect.
“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 ministry stated.
According to the government, the continued suspension of such charges has played an important role in cushioning consumers and businesses from volatility in global energy markets.
“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,” it added.
The ministry equally clarified that telecommunications services are not under consideration for any new excise duty, noting that a previous levy introduced before 2023 has already been scrapped under recently enacted tax legislation.
“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.
It consequently urged Nigerians to ignore reports alleging that fresh taxes were being planned for either sector.
“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.
Reaffirming its economic agenda, the government said its focus remains on expanding the economy, strengthening revenue collection mechanisms, reducing leakages and attracting investment rather than increasing the tax burden on citizens.
“The Federal Government 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,” the statement added.
The government further assured Nigerians that any future tax policy changes would be communicated transparently through official channels and implemented strictly in line with the law.
(Ripples)
