The Federal Government has dismissed reports suggesting it plans to introduce new taxes on telecommunications services and petroleum products following recent recommendations by the International Monetary Fund (IMF). The clarification comes amid public concern over reports that the IMF had recommended the extension of Value Added Tax (VAT) to petroleum products and the introduction of […]
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The Federal Government has dismissed reports suggesting it plans to introduce new taxes on telecommunications services and petroleum products following recent recommendations by the International Monetary Fund (IMF).
The clarification comes amid public concern over reports that the IMF had recommended the extension of Value Added Tax (VAT) to petroleum products and the introduction of excise duties on telecommunications services as part of measures to boost government revenue.
In a statement issued by the Federal Ministry of Finance, the government said the reports misrepresented the IMF’s Article IV Consultation Report and do not reflect its current policy direction.
According to the ministry, IMF recommendations are advisory in nature and do not automatically translate into government policy.
“The IMF Article IV Consultation Report contains the Fund’s assessment of Nigeria’s economy and recommendations for consideration by the authorities. These recommendations are not binding on the government and do not constitute official policy,” the statement said.
The government clarified that the existing VAT waiver on petroleum products remains in force and has not been withdrawn.
It further explained that although provisions exist in law for a fuel surcharge, such a measure can only be implemented through a formal ministerial directive and publication in the official gazette.
“No such process is currently being considered,” the statement noted.
The Federal Government said maintaining the suspension of such charges has helped cushion the impact of global energy price fluctuations on households and businesses while supporting relative stability in domestic fuel prices.
On telecommunications services, the government stated that the excise duty previously introduced on the sector has already been repealed under recently enacted tax laws and is no longer applicable.
It therefore urged the public to disregard reports suggesting that new taxes are being proposed for telecommunications services or petroleum products.
The government reaffirmed its commitment to economic reforms focused on expanding economic activity, improving revenue collection efficiency, reducing leakages, and creating a more competitive environment for investment and job creation.
It added that any future tax policy changes would be communicated through official channels and implemented in accordance with established legal and legislative procedures.
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