The Chairman of the Alliance for Economic Research and Ethics, Dele Oye, has condemned the International Monetary Fund‘s (IMF) call on the Nigerian government to impose new taxes on petroleum products and telecommunications services, arguing that such a move would further cripple businesses and deepen hardship for over 140 million poor Nigerians.

In a statement, Oye insisted that Nigeria can grow its revenue without introducing additional taxes on struggling households and businesses, noting that tax collections rose by more than 180 per cent in three years, from N10.1 trillion in 2022 to N28.3 trillion in 2025.

According to Oye, imposing fresh taxes on fuel and telecom services at a time when an estimated 140 million Nigerians live below the poverty line would amount to placing an even heavier burden on citizens already grappling with inflation, high living costs and weak purchasing power.

He argued that Nigerian businesses are already weighed down by what he described as “hidden taxes,” including high borrowing costs, unreliable electricity, multiple levies imposed by different levels of government, foreign exchange (FX) volatility and security-related expenses.

He noted that commercial lending rates, which are over 35 per cent, and soaring energy costs have significantly increased the cost of doing business, warning that additional taxes could discourage investment and slow economic growth.

He also questioned the rationale for introducing new taxes when improvements in tax administration could generate substantial additional revenue, citing the IMF’s assessment that administrative reforms alone could deliver gains comparable to those expected from new tax measures.

Rather than imposing fresh levies, Oye urged the Federal Government to strengthen tax compliance, reduce the cost of governance, eliminate revenue leakages, formalise more of the informal economy and review tax incentives enjoyed by large corporations and extractive industries.

He warned that taxing telecommunications would undermine digital inclusion and financial innovation, while additional taxes on fuel could ripple through the economy by increasing transport costs and driving up food prices.