FG Breaks Silence on New Telecom, Fuel Taxes

• The Federal Government has reacted to growing reports linked to recent IMF recommendations (telecom and fuel taxes), offering fresh clarification on issues affecting key sectors of the economy.

The Federal Government has dismissed reports suggesting it is considering the introduction of new taxes on telecommunications services and petroleum products following recommendations contained in the International Monetary Fund (IMF) Article IV Consultation Report on Nigeria.

In a statement issued by the Federal Ministry of Finance on Wednesday, the government clarified that the IMF’s recommendations do not amount to official policy and are not binding on Nigeria.

The clarification comes after reports emerged that the IMF had recommended taxes on fuel products and telecommunications services as part of measures aimed at boosting government revenue and improving fiscal sustainability.

According to the ministry, decisions on taxation can only be made through established constitutional and legislative processes and must align with national priorities and current economic realities.

The government also reassured Nigerians that the Value Added Tax (VAT) waiver on petroleum products remains in place and has not been withdrawn.

It further explained that while existing laws provide for a fuel surcharge, such a measure can only take effect through a ministerial order and official gazette publication, adding that no such process is currently being considered.

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On the telecommunications sector, the government stated that the excise duty previously introduced before 2023 has already been repealed under the country’s new tax laws and is no longer applicable.

The Ministry of Finance urged the public to disregard reports claiming fresh taxes are being planned for telecom services or petroleum products, describing such reports as inaccurate.

The government reaffirmed its commitment to economic reforms focused on expanding economic activity, improving revenue administration, attracting investment, and creating jobs rather than placing additional tax burdens on citizens.

It also assured Nigerians that any future tax policy changes would be officially communicated through the appropriate channels and implemented in accordance with the law.