No new taxes for fuel, telecom - FG

The Nigerian Federal Government has firmly dismissed reports suggesting it is considering or has adopted new taxes on telecommunications services and petroleum products. These reports emerged following the release of the International Monetary Fund's (IMF) latest Article IV Consultation Report on Nigeria, which included recommendations for revenue enhancement.

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The government has dismissed reports suggesting that it has adopted or is considering new taxes on telecommunications services and petroleum products following the publication of the International Monetary Fund Article IV Consultation Report on Nigeria.

In a statement released by the Ministry of Finance, the government clarified that the IMF's recommendations are advisory and not binding on Nigeria. The ministry stressed that such recommendations do not constitute official government policy and should not be misinterpreted as such. The government reiterated its commitment to its existing policy direction, assuring that no new taxes are being planned for the critical telecoms or petroleum sectors.

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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.

The clarification comes after The PUNCH exclusively reported that the IMF had recommended the introduction of taxes on fuel and telecommunications as part of broader measures to boost government revenue and create fiscal space. However, the Federal Government maintained that any decisions regarding taxation are subject to Nigeria's constitutional and legislative processes, and will be guided by national priorities and prevailing economic realities.

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

Furthermore, the government confirmed that the Value Added Tax (VAT) waiver on petroleum products remains in effect and has not been withdrawn. It also noted that while existing legislation allows for a fuel surcharge, its implementation would require a ministerial order and publication in the Official Gazette, a process that is not currently under consideration. The government's stance underscores its commitment to a deliberate and legally sound approach to fiscal policy.

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It also noted that although existing legislation provides for a fuel surcharge, such a measure can only take effect through a ministerial order and publication in the Official Gazette. No such process is under consideration.