Keep up with the latest news and be part of our weekly giveaways and airtime sharing; follow our WhatsApp channel for more updates. Click to Follow us

The International Monetary Fund’s, IMF, recommendation that Nigeria should consider additional taxes on telecommunications services and petroleum products has generated widespread criticism and concern among Nigerians.

It would be recalled that the IMF recently advised the Nigerian government to introduce levies on fuel products and telecom services as part of efforts to boost government revenue and create fiscal room for development projects and social intervention programmes.

The recommendation was contained in the Fund’s latest Article IV report on Nigeria.

ZINGTIE reports that the proposal immediately generated reactions across the country due to Nigerians’ past experiences with IMF-backed economic policies.

Although the Federal Government has rejected reports claiming that it had accepted or was considering the implementation of new taxes on telecommunications and petroleum products based on the IMF recommendations, many Nigerians have continued to express strong opposition to the proposal.

In a statement, the government emphasized that the recommendations contained in the IMF report were merely advisory and should not be regarded as official government policy.

The government maintained that tax-related decisions could only emerge through constitutional and legislative procedures and would always reflect Nigeria’s economic realities and national interests.

“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,” part of the statement said.

Several Nigerians have argued that introducing such taxes could worsen the economic situation, weaken businesses and increase the hardship already being experienced by millions of citizens.

Some also believe that the proposed measures could erase whatever economic progress the current administration may have recorded over the past three years.

Among those who openly criticized the proposal is the Chairman of the Alliance for Economic Research and Ethics LTD/GTE, Dele Oye.

He described the recommendation as insensitive, insisting that additional taxes would further damage businesses and worsen the conditions faced by more than 140 million poor Nigerians.

Oye argued that Nigeria possesses enough capacity to increase government revenue without placing additional tax burdens on households and businesses. He pointed out that tax revenues had increased by more than 180 percent within three years, rising from N10.1 trillion in 2022 to N28.3 trillion in 2025.

According to him, imposing new taxes on fuel and telecommunications services at a period when millions of Nigerians remain below the poverty line would only increase the burden on citizens already struggling with inflation, rising living costs and declining purchasing power.

He further stated that businesses in Nigeria are already grappling with several indirect taxes, including high interest rates, unstable electricity supply, multiple taxes imposed by various levels of government, foreign exchange instability and security-related expenses.

He noted that commercial lending rates above 35 percent and escalating energy costs have significantly raised operating expenses, warning that additional taxation could discourage investments and slow economic growth.

Similarly, a Lagos-based lawyer and tax expert, Bolu Oyeniyi, questioned the justification for introducing fresh taxes when improvements in tax administration could substantially increase government revenue.

He referenced the IMF’s own assessment, which indicated that administrative reforms alone could generate revenue comparable to the gains expected from new taxes.

Oyeniyi advised the Federal Government to prioritize stronger tax compliance, reduce the cost of governance, eliminate revenue leakages, formalize more segments of the informal economy and reassess tax incentives granted to large corporations and extractive industries instead of introducing new taxes.

He also warned that taxing telecommunications services could undermine digital inclusion and financial innovation, while additional taxes on fuel could trigger higher transportation costs and further increase food prices.

According to him, government should focus on economic recovery and create conditions that encourage businesses to expand and create jobs rather than imposing new financial burdens on citizens and entrepreneurs.

“The patient needs recovery time, not another surgery,” he said, urging the government to reject the IMF recommendations on fuel and telecom taxes and instead pursue reforms that stimulate economic growth.

Also speaking on the issue, a civil servant with the Lagos State Ministry of Commerce, Lanre Adebowale, condemned the IMF’s recommendation and cautioned the government against relying on further advice from the international financial institution.

He recalled how recommendations from the IMF in 1986 under the military administration of General Ibrahim Babangida allegedly pushed Nigeria into economic difficulties that continue to affect the country today.

According to him, no recommendation from the IMF has ever benefited ordinary Nigerians, adding that such policies often result in greater economic hardship.

“I remember very well how the Babangida government destroyed Nigeria through borrowing from the IMF. One of the conditions for getting the loan then was for the government to implement an economic policy called the Structural Adjustment Programmes (SAP).

“This was the genesis of Nigeria’s economic crisis, which we are still struggling with till date,” he stated.

He lamented that the programmes, which were intended to stabilize troubled economies, reduce government deficits and encourage market-driven reforms, eventually weakened Nigeria’s economy and imposed severe hardship on citizens.

According to him, the key elements of the programme included currency devaluation, privatization, reduction in public spending, market liberalization and tax reforms.

“This was how state-owned enterprises like Nigeria Telecommunications Limited, NITEL, Nigeria Hotels, Nigeria Airways and a lot of other public companies which were the pride of Nigeria were sold at give-away prices to a few ‘connected’ individuals.

“It is the same IMF that has come again to recommend that our government should tax Nigerians again on petroleum products and telecommunications service. Remember that most household businesses have crumbled because there is no electricity and the price of fuel to power the generators has gone far beyond the reach of ordinary people at above N1200 per liter of petrol.

“Also, remember that Nigerians pay the highest in data among other nations of the world, a development that is still generating public outcry.

“And here we are reading about a recommendation from the same IMF to increase taxes on these products and services.

“This is quite unfortunate but the good news is that the government has come out to say it is not considering bringing more taxes on telecoms and petrol. 

“That’s good enough, but going forward, I advise that Nigeria should not be listening to the IMF because it will always give advice that will favour it and not the one that will favour Nigeria,” he stated.

Please don’t forget to “Allow the notification” so you will be the first to get our gist when we publish it. 
Drop your comment in the section below, and don’t forget to share the post.