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The Nigerian Government has denied reports suggesting it is planning to introduce new taxes on telecommunications services and petroleum products
The clarification came after media reports indicated that the International Monetary Fund (IMF) had advised Nigeria to expand Value Added Tax (VAT) to petroleum products and introduce excise duties on telecommunications services as part of measures to boost government revenue and support development spending.
In a statement issued on Wednesday by the Head of Information and Public Relations at the Ministry of Finance, Efe Ovuakporie, the government said the reports misrepresented the content of the IMF report and did not reflect official policy.
The ministry explained that the IMF report contained the Fund’s assessment of Nigeria’s economy and policy recommendations for consideration, stressing that such recommendations do not constitute government policy and are not binding on the country.
According to the statement, decisions on taxation are made through constitutional and legislative processes and are guided by national priorities and prevailing economic conditions.
“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. Decisions on tax matters are taken through established constitutional and legislative processes and are guided by national priorities and prevailing economic realities, ” the statement said.
The government also clarified that the VAT waiver on petroleum products remains in effect and has not been withdrawn.
It added that while existing laws provide for a fuel surcharge, such a levy can only be implemented through a ministerial order and publication in the Official Gazette, noting that no such process is currently being considered.
The statement said the continued suspension of these charges has helped cushion the impact of global energy price fluctuations on households and businesses while contributing to relative stability in domestic fuel prices.
On telecommunications services, the government said the excise duty introduced before 2023 had been repealed under the new tax laws and is no longer applicable.
It therefore described reports claiming that new taxes were being planned for telecommunications services or petroleum products as inaccurate and urged the public to disregard them.
The Nigerian Government said it remains committed to reforms aimed at promoting economic growth, improving revenue administration and creating a more attractive environment for investment and job creation.
According to the ministry, the focus of current reforms is on expanding economic activity, reducing leakages and improving efficiency rather than imposing additional tax burdens on citizens.
The government added that any future tax measures would be communicated through official channels and implemented in accordance with the law.
“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”, the statement added.
