FG rejects claims of new fuel, telecom levies, says IMF proposal not government policy

The Federal Government has firmly denied reports stating that it plans to introduce new taxes on telecommunications services and petroleum products, and stressed that the latest recommendations made by the International Monetary Fund (IMF) do not represent official government policy.

In a statement issued on Wednesday by the Head of Information and Public Relations at the Federal Ministry of Finance, Efe Ovuakporie, the government said media reports linking it to the proposed tax on fuel and telecommunications services were misleading and based on a misinterpretation of the IMF’s latest Article IV Consultation Report on Nigeria.

According to the government, although the IMF offers a number of fiscal recommendations aimed at increasing revenue generation and strengthening public finances, the proposals remain advisory in nature and are not binding on the country.

“The government has rejected reports indicating that it has adopted or is considering new taxes on telecommunications services and petroleum products following the publication of the International Monetary Fund’s Article IV Consultation Report on Nigeria,” the statement said.

The clarification follows extensive discussions sparked by the IMF report, which recommended several revenue-raising measures, including taxes on petroleum products and telecommunications services, as part of broader efforts to improve fiscal sustainability and create additional funding for development programs.

However, the Federal Government emphasized that tax policy can only emerge through established legal and constitutional procedures and must reflect Nigeria’s economic priorities.

“The IMF Article IV Consultation Report contains the IMF’s assessment of the Nigerian economy as well as recommendations for consideration by the authorities. The recommendations are not in accordance with government policy and are not binding on Nigeria,” the ministry said.

He added, “Decisions on tax matters are taken through established constitutional and legislative processes and are guided by national priorities and prevailing economic realities.”

The government is also seeking to reassure Nigerians that existing tax relief measures in the petroleum sector remain in effect, particularly the Value Added Tax (VAT) relief on petroleum products.

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While acknowledging that the existing law contains provisions regarding fuel surcharges, the ministry explained that such levies cannot be applied automatically and require special legal procedures before they come into effect.

“It is also noted that although existing laws provide for fuel surcharges, such measures can only come into effect through ministerial orders and publication in the Official Gazette. No such process is under consideration,” the ministry said.

According to the government, the suspension of these costs plays an important role in protecting consumers and businesses from global energy market volatility.

“The continued deferral of these costs has helped cushion the impact of global energy price fluctuations on households and businesses while keeping domestic fuel prices relatively stable,” he added.

The ministry also clarified that telecommunications services are not being considered for new excise duties, and noted that previous levies imposed before 2023 have been eliminated under the recently enacted tax law.

“The government further clarified that telecommunications excise taxes imposed before 2023 have been repealed under the new tax law and are therefore no longer valid,” the statement said.

They, therefore, urged Nigerians to ignore reports stating that new taxes are being planned for the two sectors.

“Against this backdrop, reports claiming that new taxes are being planned for telecommunications services or petroleum products are not based on facts and should be ignored,” he said.

Reiterating its economic agenda, the government said its focus remains on expanding the economy, strengthening revenue collection mechanisms, reducing leakages and attracting investment rather than increasing the tax burden on the public.

“The Federal Government remains focused on reforms that promote economic growth, improve revenue administration and create a more competitive environment for investment and job creation. The emphasis remains on expanding economic activity, plugging leaks and increasing efficiency rather than placing additional tax burdens on citizens,” the statement added.

The government further assured Nigerians that any future tax policy changes will be communicated transparently through official channels and implemented strictly in accordance with the law.