FG: No Plan to Introduce New Telecoms, Fuel Taxes

Nigeria's Federal Government has refuted reports suggesting the adoption or consideration of new taxes on telecommunications services and petroleum products. These reports misrepresented recommendations from the International Monetary Fund's (IMF) Article IV Consultation Report, according to a statement from the Ministry of Finance. The government emphasized that IMF recommendations are for consideration and are not binding on Nigeria. Decisions regarding taxation follow established constitutional and legislative processes, guided by national priorities and economic realities. The statement also clarified that the Value Added Tax (VAT) waiver on petroleum products remains in place and has not been withdrawn. Furthermore, while existing legislation allows for a fuel surcharge, its implementation would require a ministerial order and publication, a process currently not under consideration. The government highlighted that suspending these charges helps cushion the impact of global energy price fluctuations on households and businesses, maintaining relatively stable domestic fuel prices. Regarding telecommunications, the excise duty introduced before 2023 has been repealed under new tax laws and is no longer applicable. The Federal Government reiterated its focus on economic growth, revenue administration, and creating a competitive investment environment, rather than imposing additional tax burdens.

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The IMF Article IV Consultation Report contains the Fund’s assessment of Nigeria’s economy as well as recommendations for consideration by the authorities. Those recommendations do not amount to government policy and are not binding on Nigeria.