June 14, 2026 | SUNTV Global Channel
The International Monetary Fund (IMF) has recommended the introduction of new taxes on fuel products and telecommunications services in Nigeria as part of broader measures aimed at increasing government revenue and strengthening public finances.
In its 2026 Article IV Consultation Report on Nigeria, the IMF advised the Federal Government to consider expanding Value Added Tax (VAT) to fuel products, introducing excise duties on telecommunications services, increasing the VAT rate, and reviewing certain tax exemptions and customs duty waivers.
According to the Fund, the proposed measures are intended to generate additional revenue needed to finance critical infrastructure projects, social intervention programmes, and support for vulnerable citizens.
“Further tax policy changes will likely be needed, including extending VAT to fuel products and introducing telecom excises,” the IMF stated in its report.
The recommendation comes amid ongoing economic reforms and growing pressure on government finances despite efforts to boost non-oil revenue sources.
However, the IMF cautioned that the implementation of any new tax measures should take into account the country’s rising poverty levels and food insecurity challenges.
“The timing of reforms must consider the poverty and food insecurity situation and ensure that the cash transfer system is in place and adequately funded,” the report noted.
The proposal is expected to trigger debate among Nigerians, particularly as telecom operators, labour unions, and business groups have previously opposed additional taxes that could increase the cost of communication, transportation, and other essential services.
Telecommunications companies have repeatedly warned that imposing new taxes on the sector could lead to higher costs for voice calls, internet data, and digital services, placing further financial pressure on consumers.
Similarly, concerns have been raised over fuel-related taxes following the removal of petrol subsidies, which contributed to higher transportation costs and increased food prices nationwide.
According to IMF projections, the proposed tax reforms could generate additional revenue equivalent to 3.9 per cent of Nigeria’s Gross Domestic Product (GDP) within the next three years.
The Fund also estimated that improvements in tax administration and compliance could contribute an additional 3.1 per cent of GDP, while overall reforms could raise government revenue by about 4.6 per cent of GDP over the medium term.
The IMF maintained that stronger revenue mobilisation remains essential for Nigeria to address fiscal challenges, reduce budget deficits, and sustain economic development efforts.
The Federal Government has yet to officially respond to the latest recommendations.
SUNTV Global Channel will continue to monitor developments and provide updates on government reactions and public responses to the proposed tax measures.
