Barely a week after the IMF suggested Nigeria tax fuel and telecoms to plug its revenue gap, the Federal Government has slammed the door shut on both proposals, moving quickly to calm a public already on edge over the cost of living.
Maryann Duke, Senior Special Assistant on Communications and Press Secretary to the Minister of Finance and Coordinating Minister of the Economy, said in a statement on Wednesday: "For the avoidance of doubt, the Federal Government is not considering the introduction of any new taxes on telecommunications services or petroleum products." She explained that IMF Article IV consultation reports only contain policy assessments and recommendations for countries and are not binding on governments.
A separate statement from the Federal Ministry of Finance, signed by Efe Ovuakporie, Head of the Information and Public Relations Unit, said the reports misrepresented the content of the IMF report and did not reflect the government's policy direction. It stressed that decisions on tax matters are taken through established constitutional and legislative processes and are guided by national priorities and prevailing economic realities. The government also clarified that the VAT waiver on petroleum products remains in place and has not been withdrawn.
The clarification was triggered by media coverage of the IMF's own published recommendations. The statement followed reports suggesting that Nigeria may introduce additional taxes after the IMF recommended extending Value Added Tax to fuel products and applying excise duties on telecommunications services to improve revenue generation, fund development, and increase social spending.
On the telecom side specifically, the ministry went further than a simple denial. The ministry sought to dispel speculation surrounding the telecommunications sector, stating that the excise duty previously imposed on telecom services before 2023 had been repealed under recently enacted tax laws and is no longer applicable.
Authorities added that maintaining the suspension of fuel-related charges has helped shield consumers and businesses from volatility in global energy markets while supporting relative stability in domestic fuel prices.
Civil society reaction to the original IMF recommendation had already been sharp. The Alliance for Economic Research and Ethics LTD/GTE criticised the recommendations, warning that additional taxes could worsen cost-of-living pressures for households and businesses. The group acknowledged Nigeria's revenue challenges but argued that introducing new taxes at a time of elevated inflation and rising living costs could have negative social and economic consequences.
Government officials stressed that current fiscal reforms are focused on improving revenue collection efficiency rather than introducing new sector-specific levies, reiterating that its economic strategy will continue to prioritise growth, investment, and fiscal sustainability while balancing the interests of businesses and consumers.
The government said its focus remains on measures that stimulate economic activity, improve tax administration, and reduce leakages rather than imposing additional tax burdens on citizens.
The episode captures a recurring pattern in Nigeria's reform era: the IMF proposes, the public reacts, and Abuja retreats to reassurance. Whether that retreat reflects a genuine policy decision or simply a deferral of an unpopular conversation to a later, less politically sensitive moment is the question that will linger long after Wednesday's statement.
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