The Federal Government has firmly rejected claims that it plans to introduce new taxes on telecommunications services and petroleum products, following recommendations from the International Monetary Fund.
In a swift rebuttal on Wednesday, the government described reports suggesting it had adopted the IMF’s proposals as a “misrepresentation” of the Article IV Consultation Report on Nigeria.
Not Binding, Not Policy
The Ministry of Finance, through its Head of Information and Public Relations, Efe Ovuakporie, made it clear that the IMF’s recommendations are merely advisory and carry no legal weight in Nigeria.
“Those recommendations do not amount to government policy and are not binding on Nigeria,” the statement read, emphasising that tax decisions must follow constitutional and legislative processes.
Existing Protections Remain Intact
The government offered specific clarifications:
· Fuel Taxes: The VAT waiver on petroleum products stays in place. While legislation provides for a fuel surcharge, it can only take effect through a ministerial order and official gazette publication. “No such process is under consideration,” the ministry stressed.
· Telecom Taxes: The excise duty introduced before 2023 has already been abolished under new tax laws and “is therefore no longer applicable.”
A Lesson in Reading the Fine Print
The government argued that retaining these waivers has helped shield Nigerians from global energy price volatility, keeping domestic fuel prices relatively stable.
“The continued suspension of these charges has helped cushion the effect of global energy price fluctuations on households and businesses,” the statement noted.
What the Government Is Actually Doing
Rather than slapping new taxes on citizens, the Federal Government says it remains focused on:
· Stimulating economic growth
· Improving revenue administration
· Plugging leakages and improving efficiency
· Creating a competitive environment for investment and job creation
“The emphasis remains on expanding economic activity… rather than placing additional tax burdens on citizens,” the ministry added.
Public Reassurance
The government urged Nigerians to disregard the reports, insisting that any future tax measures would be announced through official channels and implemented according to the law.
Bottom line: No new taxes on fuel or telecom. For now, Nigerians can breathe easy.
