Nigeria Rejects IMF-Proposed Fuel VAT and Telecom Excise as Poverty Hits 63%
Updated
Updated · BBC.com · Jun 17
Nigeria Rejects IMF-Proposed Fuel VAT and Telecom Excise as Poverty Hits 63%
3 articles · Updated · BBC.com · Jun 17
Summary
Nigeria's Finance Ministry said the government is not considering new taxes on fuel or telecommunications, rejecting reports that IMF recommendations were being adopted.
Maryann Duke, a ministry spokesperson, said the IMF's Article IV proposals are advisory rather than binding, and any tax change would have to go through constitutional and legislative processes.
The ministry added that petroleum tax waivers remain in place and that a telecom excise duty introduced before 2023 was repealed under new tax laws.
The IMF had urged Nigeria to extend VAT to fuel products, introduce telecom excise duties and eventually raise VAT, arguing recent tax reforms will not cover debt service and public spending.
The dispute matters politically because the IMF also said poverty has reached 63% and about 27 million Nigerians face food insecurity, heightening fears that higher fuel and phone costs would worsen living conditions.