Fuel, telecom taxes needed for Nigeria’s growth – IMF

The International Monetary Fund (IMF) has said that Nigeria’s long-term economic stability and growth will depend on sustained fiscal reforms, including improved taxation in key sectors such as fuel and telecommunications.

The global financial institution made the position known while reviewing Nigeria’s economic outlook, noting that the country must continue to strengthen revenue mobilisation in order to reduce its dependence on borrowing and oil earnings.

According to the IMF, reforms in fuel pricing and broader tax administration have already helped to improve government revenue, but further adjustments are still necessary to support infrastructure development, social investment, and macroeconomic stability.

It stressed that expanding the tax base, particularly in high-consumption sectors like telecommunications, would help Nigeria create a more resilient and diversified revenue system capable of funding development priorities.

The IMF also encouraged Nigerian authorities to ensure that reforms are implemented in a way that protects vulnerable citizens, suggesting that targeted social support measures should accompany any revenue-enhancing policies.

While acknowledging the economic hardship that often accompanies fiscal adjustments, the fund maintained that such reforms are essential for sustainable growth and long-term stability.