FG says no new taxes planned on telecoms, petroleum products

The federal government has dismissed reports that it is considering new taxes on telecommunications services and petroleum products, seeking to calm concerns that recommendations contained in the International Monetary Fund’s latest assessment of the economy could translate into higher costs for consumers and businesses.

In a statement released Wednesday, the ministry of finance said media reports suggesting that authorities had adopted or were weighing new levies on fuel and telecom services misrepresented the contents of the IMF’s Article IV Consultation Report on Nigeria.

The ministry said the IMF report contained the Fund’s assessment of the country’s economic conditions and policy recommendations, but stressed that such proposals do not constitute government policy and are not binding on Nigerian authorities.

“Decisions on tax matters are taken through established constitutional and legislative processes and are guided by national priorities and prevailing economic realities,” the ministry said.

The clarification comes amid heightened sensitivity over taxes and consumer prices in Africa’s most populous nation, where households and businesses have grappled with elevated inflation and the impact of economic reforms, including the removal of fuel subsidies and the liberalisation of the foreign-exchange market.

The government said the Value Added Tax (VAT) waiver on petroleum products remains in force and has not been withdrawn.

It also noted that while existing legislation provides for the possibility of a fuel surcharge, any such measure would require a ministerial order and publication in the official gazette before taking effect.

“No such process is under consideration,” the ministry said.

Authorities added that maintaining the suspension of those charges has helped shield consumers and businesses from volatility in global energy markets while supporting relative stability in domestic fuel prices.

The ministry also sought to dispel speculation surrounding the telecommunications sector, stating that the excise duty previously imposed on telecom services before 2023 had been repealed under recently enacted tax laws and is no longer applicable.

The government said reports claiming that new taxes were being planned for telecommunications services or petroleum products were inaccurate and should be disregarded.

The federal government has been pursuing a broad fiscal reform agenda aimed at improving revenue collection, widening the tax base and strengthening public finances.

The administration said its focus remains on measures that stimulate economic activity, improve tax administration and reduce leakages rather than imposing additional tax burdens on citizens.

The ministry said any future tax measures would be announced through official channels and implemented in accordance with the law, emphasising that no new levies on fuel or telecommunications services are currently being considered.