“No New Taxes On Fuel, Telecoms”— Says FG, Accuses Opposition Of Misleading Nigerians

The Federal Government on Wednesday dismissed reports that it plans to introduce new taxes on telecommunications services and petroleum products, insisting that no such measures are under consideration and accusing opposition elements of misleading Nigerians over recommendations contained in a recent International Monetary Fund, IMF, report.

The clarification followed reports suggesting that the government may extend Value Added Tax, VAT, to fuel products and introduce excise duties on telecommunications services after the publication of the IMF’s Article IV Consultation Report on Nigeria.

However, the Ministry of Finance said the reports misrepresented the IMF’s recommendations and did not reflect government policy.

In a statement issued by the ministry’s Head of Information and Public Relations Unit, Efe Ovuakporie, the government stressed that IMF recommendations are advisory and not binding.

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

The government also clarified that the VAT waiver on petroleum products remains in place and has not been withdrawn.

According to the ministry, 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,” it stated.

The ministry further noted that the telecommunications excise duty introduced before 2023 has been repealed under the country’s new tax laws and is no longer applicable.

“Reports claiming that new taxes are being planned for telecommunications services or petroleum products are not factual and should be disregarded,” the statement added.

Reaffirming its economic direction, the government said its focus remains on growing the economy, improving revenue administration, plugging leakages and creating a more competitive environment for investment and job creation.

“The emphasis remains on expanding economic activity, plugging leakages and improving efficiency rather than placing additional tax burdens on citizens.

“Any future tax measures will be announced through official channels and implemented in line with the law.” the statement assured.