The Federal Government has dismissed reports suggesting it has adopted or is considering new taxes on telecommunications services and petroleum products following the release of the International Monetary Fund’s (IMF) Article IV Consultation Report on Nigeria.
The clarification comes amid reports claiming that the IMF recommended extending Value Added Tax (VAT) to petroleum products and introducing excise duties on telecommunications services as part of efforts to boost government revenue and fund development initiatives.
However, in a statement issued on Wednesday by the Head of the Information and Public Relations Unit at the Federal Ministry of Finance, Efe Ovuakporie, the government said the reports misrepresented the IMF’s recommendations and did not reflect its policy direction.
According to the statement, the IMF Article IV Consultation Report contains the Fund’s assessment of Nigeria’s economy and recommendations for consideration by the authorities, but such recommendations are neither binding nor equivalent to government policy.
“The 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The government further clarified that the VAT waiver on petroleum products remains in force and has not been withdrawn.
It also noted that although existing legislation provides for a fuel surcharge, any implementation would require a ministerial order and formal publication in the Official Gazette.
“No such process is under consideration,” the statement added.
According to the ministry, the continued suspension of these charges has helped mitigate the impact of global energy price fluctuations on households and businesses while keeping domestic fuel prices relatively stable.
The government also clarified that the telecommunications excise duty introduced before 2023 has been repealed under the new tax laws and is no longer applicable.
Consequently, it said reports suggesting that new taxes are being planned for telecommunications services or petroleum products are inaccurate and should be disregarded.
The Federal Government reaffirmed its commitment to economic reforms aimed at stimulating growth, improving revenue administration, and creating a more competitive environment for investment and job creation.
