The Federal Government has rejected suggestions that it plans to introduce new taxes on telecommunications services, distancing itself from recommendations contained in the International Monetary Fund’s (IMF) latest Article IV Consultation Report and assuring operators and subscribers that no such measure is under consideration.
The clarification follows concerns across Nigeria’s telecommunications and technology sectors after reports emerged that the IMF had advised the government to introduce excise duties on telecom services as part of broader efforts to increase revenue generation.
In a statement issued on Tuesday, the government said reports linking the IMF recommendations to imminent tax measures were inaccurate and misrepresented both the content of the Fund’s report and the government’s policy position.
According to the government, the IMF’s Article IV Consultation Report contains policy recommendations for consideration by member countries but does not constitute binding policy directives.
“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,” the statement said.
“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,” the statement said.
The government’s response effectively rejects one of the IMF’s key fiscal policy suggestions, which proposed the introduction of excise duties on telecommunications services alongside the extension of Value Added Tax (VAT) to fuel products as potential measures to strengthen public finances over the medium term.
FG rules out telecoms excise duty
Of particular significance to the telecommunications industry, the government clarified that the telecoms excise duty introduced before 2023 is no longer in force.
According to the statement, the duty was repealed under Nigeria’s new tax laws and is therefore no longer applicable.
The clarification is expected to reassure telecoms operators, digital service providers and millions of subscribers who had expressed concerns that new sector-specific taxes could increase the cost of voice, data and other digital services at a time when consumers are already facing mounting economic pressures.
“Against this backdrop, reports claiming that new taxes are being planned for telecommunications services or petroleum products are not factual and should be disregarded,” the government said.
The government added that its current focus is on creating a business-friendly environment that supports investment, economic growth and digital transformation rather than imposing additional burdens on businesses and citizens.
It further stated that any future tax measures would be communicated through official channels and implemented in accordance with established legal and constitutional processes.
Relief for telecoms industry
The government’s position is likely to be welcomed by stakeholders in Nigeria’s telecommunications sector, which has repeatedly cautioned against additional taxes on digital services.
Industry operators have long argued that higher taxes on telecom services could undermine broadband adoption, increase the cost of connectivity and slow progress towards national digital economy objectives.
The issue has become particularly sensitive following the implementation of recent tariff adjustments by telecom operators aimed at addressing rising operational costs, foreign exchange pressures and infrastructure investments.
Any additional tax burden on voice and data services could ultimately be passed on to consumers, potentially affecting digital inclusion efforts and internet adoption among low-income users.
IMF proposes broader tax measures
The clarification comes after the publication of the IMF’s 2026 Article IV Consultation Report, which examined Nigeria’s fiscal outlook and identified options for increasing government revenue.
Among the measures suggested by the Fund were the introduction of excise duties on telecommunications services and the extension of VAT to fuel products.
The IMF argued that such measures could complement ongoing tax administration reforms, broaden the revenue base and create additional fiscal space for development spending and social interventions.
However, the Federal Government’s latest statement underscores that these proposals remain recommendations from the multilateral institution and do not form part of Nigeria’s current tax policy agenda.
Nigeria’s tax framework underwent significant changes following the implementation of new tax laws that took effect on January 1, 2026. The reforms consolidated several tax provisions and introduced measures aimed at improving tax administration, strengthening compliance and supporting economic growth.
By clarifying that the telecoms excise duty has already been repealed under the new legal framework, the government has signalled that it is not prepared to revisit the measure despite the IMF’s recommendation, providing certainty for investors and consumers in one of Nigeria’s most critical sectors.
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