IMF Urges Tinubu to Implement Fuel, Telecom Taxes

The International Monetary Fund (IMF) has advised the Nigerian government, under President Bola Ahmed Tinubu, to implement taxes on fuel products and telecommunications services. This recommendation is part of a broader strategy to enhance government revenue and create fiscal space for social development initiatives.

The IMF's 2026 Article IV consultation report emphasizes the need for additional tax measures despite recent reforms to Nigeria's tax system. The report suggests increasing the Value Added Tax (VAT) rate, extending VAT to fuel products, and rationalizing tax expenditures.

The IMF cautioned that new taxes should consider the rising poverty levels and worsening food insecurity in Nigeria. Previous attempts to impose a five percent excise duty on telecommunications services faced strong opposition and were eventually scrapped.

The IMF estimates that the proposed tax measures could generate significant revenue, contributing to a projected increase of 3.9 percent of GDP over three years.