IMF Tells Nigeria to Tax Fuel, Telecoms as Revenue Push Intensifies
By Aboki Forex —
The International Monetary Fund has advised the Nigerian government to impose excise duties on telecom services and extend VAT to fuel products. The recommendation is part of the IMF's 2026 Article IV Consultation report on Nigeria.
The Fund said these new taxes are needed to boost government revenue amid rising spending pressure. If accepted, the policy would likely increase the cost of petrol, airtime, and data for Nigerians.
The IMF also urged the federal government to raise the current VAT rate of 7.5% and close tax loopholes in key sectors. It projected that the new taxes, combined with better compliance, could increase revenue by 3.9% of GDP over the medium term.
According to the Fund, strengthening tax enforcement and digitalising revenue collection could bring in an additional 3.1% of GDP by reducing leakages and informality in the economy.
Muda Yusuf, Chief Executive Officer of the Centre for the Promotion of Private Enterprise, has reacted to the IMF's advice. He offered comments on the potential impact of the proposed taxes on businesses and consumers.