The International Monetary Fund (IMF) has recommended that Nigeria introduce new taxes on fuel products and telecommunications services, warning that additional measures are needed to boost government revenue and sustain economic reforms.

In its 2026 Article IV Consultation report, the IMF suggested:

• Extending VAT to fuel products.
• Introducing excise duties on telecom services such as calls and data.
• Increasing VAT rates.
• Reviewing tax exemptions and customs duty waivers.

The Fund projected that these reforms could generate up to 3.9% of Nigeria’s GDP in additional revenue within three years, with improved compliance adding another 3.1% of GDP.

Concerns Raised

• Cost of Living: Labour unions and business groups argue that fuel taxes would worsen transport and food prices, especially after subsidy removal.
• Telecom Costs: Operators warn that excise duties would raise call and data prices for subscribers.
• Poverty Impact: IMF cautioned that reforms must consider Nigeria’s worsening poverty and food insecurity, urging that a cash transfer system be in place to cushion vulnerable citizens.

Broader Context
Despite recent reforms, Nigeria continues to face fiscal pressures. The IMF insists stronger revenue mobilisation is critical to fund development projects, social programmes, and support for vulnerable households.