FG Speaks On Alleged Plans to Introduce New Telecom and Fuel Taxes, Clarifies IMF Recommendations

The Federal Government has dismissed reports suggesting it plans to introduce fresh taxes on telecommunications services and petroleum products, insisting that no such measures are currently under consideration.

The clarification comes in response to public reactions following the publication of the International Monetary Fund’s (IMF) Article IV Consultation Report on Nigeria, which contained recommendations aimed at strengthening government revenue and improving fiscal sustainability.

In a statement issued on Tuesday, Maryann Duke, Senior Special Assistant on Communications and Press Secretary to the Minister of Finance and Coordinating Minister of the Economy, said the reports misrepresented the position of the Federal Government.

According to Duke, the recommendations contained in the IMF report are advisory in nature and should not be interpreted as government policy or imminent fiscal action.

She explained that the IMF’s Article IV Consultation process involves periodic assessments of member countries’ economies and often includes policy suggestions for governments to consider. However, such recommendations are neither mandatory nor binding.

“The Federal Government is not considering the introduction of any new taxes on telecommunications services or petroleum products,” Duke stated.

She emphasized that economic and fiscal policies adopted by Nigeria are determined by the country’s national priorities, development objectives and constitutional processes rather than by external institutions.

“The Government wishes to clarify that the IMF Article IV Consultation Report contains the Fund’s assessments and policy recommendations for consideration by the relevant country. Such recommendations do not constitute decisions of the Government of Nigeria, nor are they binding on the Government,” she added.

The ministry further reassured Nigerians that the Value Added Tax (VAT) waiver currently applicable to petroleum products remains in effect and has not been withdrawn.

According to the statement, the waiver continues to serve as a buffer against volatility in the international energy market by helping to keep domestic fuel prices lower than they otherwise would be.

Duke noted that the policy has played a significant role in cushioning households and businesses from the full impact of global oil price fluctuations and regional fuel market pressures.

“With respect to petroleum products, the Value Added Tax (VAT) waiver currently applicable to fuel remains in place and has not been withdrawn,” she said.

She explained that any proposal to impose a fuel surcharge or similar levy would require a formal ministerial directive and publication in the Federal Government’s Official Gazette before it could take effect.

According to the ministry, no such process has been initiated, nor is it presently being contemplated.

The statement also addressed concerns regarding telecommunications services, clarifying that excise duties previously imposed on the sector have already been abolished under recently enacted tax reforms.

“The Federal Government also wishes to clarify that the telecommunications excise duty introduced prior to 2023 has been repealed under the new tax laws and is therefore no longer applicable,” Duke stated.

The ministry stressed that the suspended taxes and existing relief measures have contributed to maintaining relative stability in domestic energy prices and supporting economic activities across various sectors.

It urged businesses, investors, industry operators and members of the public to disregard reports claiming that new taxes on fuel or telecommunications services are imminent.

The government reiterated its commitment to maintaining a transparent, predictable and growth-oriented tax regime that supports economic development while protecting citizens from undue financial burdens.

Duke assured Nigerians that any future changes to tax policies would be communicated through official government channels and implemented strictly in accordance with due process and existing legal frameworks.

The statement concluded by reaffirming the administration’s commitment to responsible economic management and stakeholder engagement as it pursues policies aimed at sustaining growth, attracting investment and improving the welfare of citizens.