Nigeria Faces IMF Push for New Fuel and Telecom Taxes

The International Monetary Fund (IMF) has advised Nigeria’s federal government to introduce excise duties on fuel products and telecommunications services and to expand the value‑added tax (VAT) to cover fuel, as part of a broader fiscal reform package. The Fund estimates the measures could raise about 3.9 % of GDP in revenue over three years, with additional gains from improved tax administration. It cautioned that any new taxes must consider rising poverty and food‑insecurity, and that cash‑transfer systems should be funded before reforms are implemented.

The Alliance for Economic Research and Ethics (GTE) dismissed the IMF’s proposals, warning they could deepen inflation and the cost‑of‑living crisis. The group said the IMF’s plan is “a familiar policy approach… that would make the poor poorer” and urged Nigeria to focus on better tax administration, broadening the tax base and improving public‑spending efficiency instead of adding new levies on essential services.