The International Monetary Fund (IMF) has advised the Nigerian government to consider introducing new taxes on fuel products and telecommunications services as part of efforts to increase revenue and strengthen the country’s finances.
In its latest 2026 Article IV Consultation Report on Nigeria, the IMF said additional tax measures may be necessary in the coming years despite recent reforms aimed at improving the nation’s tax system.
According to the report, the proposed measures could include extending Value Added Tax (VAT) to fuel products, introducing excise duties on telecom services, and reviewing certain tax exemptions currently enjoyed by some industries.
IMF Warns About Poverty Concerns
While recommending the new taxes, the IMF cautioned that any reforms must take into account the rising levels of poverty and food insecurity across the country.
The Fund stressed that support systems, including cash transfer programmes for vulnerable Nigerians, should be fully operational before implementing measures that could increase living costs.
Possible Impact On Nigerians
The recommendation is expected to generate debate, especially as previous attempts to introduce taxes on telecom services faced strong opposition from industry operators and consumers.
Telecom companies have consistently argued that additional taxes could lead to higher call and data costs for subscribers, citing rising operational expenses and multiple existing levies.
Similarly, proposals affecting fuel prices have often been met with resistance from labour unions and business groups, particularly after the removal of fuel subsidies and the resulting increase in transportation and living costs.
Why The IMF Wants More Taxes
According to the IMF, stronger revenue generation is necessary to support government spending, social welfare programmes, and economic development.
The organisation estimates that new tax measures and improved tax administration could significantly increase government revenue over the next few years.
The report also highlighted reforms such as improved tax compliance, electronic invoicing, expanded taxpayer registration, and better enforcement mechanisms as key tools for boosting revenue collection.
Despite acknowledging that some recent tax reforms may temporarily reduce government income, the IMF believes Nigeria can achieve long-term fiscal stability through a combination of tax reforms and stronger revenue administration.
Source: Adapted from the IMF’s 2026 Article IV Consultation Report on Nigeria.
