IMF Report: FG Takes Decision on New Fuel and Telecom Taxes, Nigerians React
- Federal Government rules out new taxes on telecom services and fuel amidst IMF recommendations
- Ministry of Finance assures VAT waiver on petroleum products remains intact for citizens
- The government emphasises focus on economic growth rather than increasing financial burdens on Nigerians
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
The Federal Government has moved swiftly to calm growing concerns over reports that it plans to introduce new taxes on telecommunications services and petroleum products following recommendations by the International Monetary Fund (IMF).
The clarification comes after widespread reactions trailed the release of the IMF's Article IV Consultation Report on Nigeria, with many Nigerians expressing fears that additional taxes could worsen the country's cost-of-living crisis.
Source: Getty Images
However, the government has now made its position clear: no new taxes on fuel or telecom services are being considered.
Government says IMF advice is not binding
In a statement issued on Wednesday, June 17, 2026, the Ministry of Finance dismissed reports suggesting that Nigeria had adopted the IMF's recommendations on fuel and telecom taxation.
According to the ministry's Head of Information and Public Relations, Efe Ovuakporie, the IMF report merely contains the Fund's assessment of Nigeria's economy and policy recommendations, which the government is free to accept or reject.
"The recommendations do not amount to government policy and are not binding on Nigeria," he stated.
He explained that tax decisions in Nigeria are made through constitutional and legislative processes and must align with national priorities and current economic realities, not external prescriptions.
The clarification is significant because Nigerians have become increasingly wary of reforms linked to international financial institutions, especially after the removal of fuel subsidies and the floating of the naira, policies that many associate with recommendations from global lenders.
No new fuel tax, VAT waiver remains
The Federal Government also reassured Nigerians that the Value Added Tax (VAT) waiver on petroleum products remains in force and has not been withdrawn.
It further clarified that although existing laws provide for a possible fuel surcharge, such a charge can only take effect after a ministerial order and official gazetting. According to the ministry, no such process is currently underway.
According to a report by Daily Trust, officials noted that suspending such charges has helped cushion households and businesses from the impact of fluctuating global energy prices while contributing to relatively stable domestic fuel prices.
Telecom excise duty has already been repealed
In the telecommunications sector, the government stated that the excise duty introduced before 2023 has already been repealed under Nigeria's new tax laws.
As a result, claims that authorities are planning a fresh tax on calls, data, or other telecom services are "false and misleading," the ministry said.
The reassurance comes at a time when millions of Nigerians are grappling with rising costs of mobile data and voice services, making any suggestion of additional taxes particularly sensitive.
Nigerians react: 'enough of new taxes'
The reports had earlier sparked a wave of reactions across social media, with many Nigerians urging the government to resist what they described as "harsh IMF prescriptions."
Several users argued that citizens are already burdened by inflation, high transportation costs and increasing utility bills, insisting that imposing new taxes on fuel or telecommunications would deepen economic hardship.
Others welcomed the government's swift clarification, saying it showed sensitivity to public concerns and a willingness to prioritise the welfare of citizens over unpopular external recommendations.
For many Nigerians, the issue extends beyond taxes. It reflects a broader debate about how economic reforms should be designed and whether policies recommended by international institutions should always align with local realities.
FG promises growth, not more burdens
The Federal Government insisted that its focus remains on promoting economic growth, improving revenue collection, plugging leakages and creating an environment that encourages investment and job creation.
Rather than increasing the tax burden on citizens, authorities said the priority is to expand economic activity and improve efficiency across government institutions.
Source: Twitter
The ministry added that any future tax changes, if necessary, would be communicated transparently through official channels and implemented strictly in accordance with the law.
FG clarifies claims of 25% Levy on building materials
Legit.ng earlier reported that the federal government has denied claims that the Nigeria Tax Act 2025 imposed a 25% tax on building materials, construction funds, or money held in bank accounts.
In a statement on Sunday, February 15, Taiwo Oyedele, the chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, noted that claims circulating in a viral video that the new tax law would take effect in 2027 and introduce fresh levies on funds used for construction and other transactions were false.
The committee said the Act has already commenced and contains no provision imposing a 25% tax on construction costs, business expenses, or bank balances.
Source: Legit.ng
