The Federal Government has denied reports claiming it plans to introduce new taxes on telecommunications services and petroleum products, describing the reports as inaccurate and misleading.
In a statement released on Wednesday through the Federal Ministry of Finance, the government clarified that it has not approved any new tax measures targeting the telecom or energy sectors. It also reassured Nigerians that the existing Value Added Tax (VAT) waiver on petroleum products remains in place and has not been removed.
The clarification followed growing public concern after the release of the International Monetary Fund’s (IMF) latest Article IV Consultation Report on Nigeria. Some media reports interpreted recommendations in the report as a sign that the government was preparing to increase taxes on fuel and telecommunications services.
However, the Finance Ministry stressed that the IMF report only contains recommendations from the international financial institution and should not be mistaken for government policy.
According to the ministry, the IMF’s assessments and suggestions are advisory in nature and do not automatically become government decisions. It explained that any tax-related policy must go through Nigeria’s constitutional and legislative processes before it can be implemented.
The government emphasized that decisions on taxation are guided by national interests, economic conditions, and legal procedures. It added that if any future tax measures are considered, they will be officially announced through the appropriate channels and carried out in line with existing laws.
The ministry also addressed concerns about telecommunications taxation. It revealed that the five percent excise duty previously imposed on telecom services has already been repealed under recent tax reforms and is no longer in effect.
This clarification is important because some reports suggested that the government intended to reintroduce the tax. Authorities stated that no such plan currently exists.
Nigeria’s telecommunications industry plays a critical role in the country’s economy, serving millions of subscribers and supporting businesses, education, financial services, and digital innovation. Industry stakeholders had previously argued that the excise duty increased operating costs and often resulted in higher charges for consumers through increased call, data, and internet tariffs.
The government noted that removing the excise duty aligns with efforts to lower business costs, encourage investment, and improve access to digital services for more Nigerians.
On petroleum products, the government explained that while existing laws provide room for a fuel surcharge, such a measure cannot be implemented without a formal process. This would require a ministerial order and publication in the Official Gazette before becoming effective.
The ministry stated clearly that no such process has been initiated or is currently under consideration.
It further confirmed that the VAT waiver on petroleum products remains active. According to the government, maintaining the waiver has helped shield consumers and businesses from the effects of volatile global oil prices and contributed to keeping domestic fuel prices relatively stable.
Beyond addressing the tax concerns, the statement highlighted the administration’s broader economic strategy. Rather than introducing additional taxes on citizens, the government said it is focusing on stimulating economic growth, improving tax collection systems, and blocking revenue leakages.
Officials explained that increasing economic activity and strengthening revenue administration are key priorities for boosting government income without placing extra burdens on households and businesses.
The government’s position comes at a time when Nigeria is working to improve public revenue while managing the economic effects of major reforms, including fuel subsidy removal and currency adjustments.
The statement, signed by Efe Ovuakporie, Head of the Information and Public Relations Unit of the Federal Ministry of Finance, reaffirmed the administration’s commitment to policies that encourage investment, create jobs, and support long-term economic growth.
For now, Nigerians can be assured that there are no plans to introduce new taxes on telecommunications services or petroleum products, despite recent speculation following the IMF report.
