Federal Government Dismisses Reports of Fresh Taxes on Fuel and Telecoms

The Federal Government has dismissed reports suggesting it is considering the introduction of new taxes on telecommunications services and petroleum products, following the publication of the International Monetary Fund (IMF) Article IV Consultation Report on Nigeria.

In a statement issued by the Head of the Information and Public Relations Unit at the Ministry of Finance, Efe Ovuakporie, the government said media reports linking the IMF recommendations to imminent tax increases were inaccurate and misrepresented the country’s policy direction.

The government stressed that the IMF report contains the Fund’s independent assessment of Nigeria’s economy and a set of recommendations for consideration, not directives that the country is obliged to implement.

“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.”

Seeking to reassure Nigerians already grappling with economic pressures, the government clarified that the Value Added Tax (VAT) waiver on petroleum products remains in force and has not been withdrawn.

It further explained that while existing legislation provides for the possibility of a fuel surcharge, such a measure can only be introduced through a ministerial order and publication in the Official Gazette.

According to the ministry, no such process is currently being considered.

“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 noted.

The government also addressed concerns surrounding the telecommunications sector, clarifying that the excise duty previously imposed on telecom services before 2023 has since been repealed under the country’s new tax laws and is no longer applicable.

It therefore urged the public to disregard reports claiming that fresh taxes are being planned for telecommunications services or petroleum products.

“Reports suggesting the introduction of new taxes on telecommunications services or petroleum products are not factual and should be disregarded,” the ministry stated.

The government added that any future tax measures would be communicated transparently through official channels and implemented in accordance with the law.

The clarification comes amid growing public sensitivity to fiscal policies and living costs, with many Nigerians closely monitoring any developments that could affect fuel prices, communication costs and household expenses.