Following the publication of the International Monetary Fund (IMF) Article IV Consultation Report on Nigeria, the Federal Government has dismissed reports suggesting that it is considering new taxes on telecommunications services and petroleum products to raise revenue, fund development and social spending.

However, a statement by Efe Ovuakporie, Head, Information and Public Relations Unit, Ministry of Finance, on Wednesday, said the government’s response to the reports was that they misrepresented the content of the IMF report and did not reflect its policy direction.

“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”, Efe said.

The government has therefore clarified that the Value Added Tax (VAT) waiver on petroleum products remains in place and has not been withdrawn, as these charges have helped in controlling price fluctuation and keeping domestic fuel prices stable.

It also noted that 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.

The government further clarified that the telecommunications excise duty introduced before 2023 has been repealed under the new tax laws and is therefore no longer applicable.

The Federal Government said it remained focused on reforms that promote economic growth, improve revenue administration, and create 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 added.

Reports claiming that new taxes are being planned for telecommunications services or petroleum products are not factual and should be disregarded.