The International Monetary Fund (IMF)’s recommendation that Nigeria consider imposing additional taxes on telecommunications services and petroleum products has triggered widespread criticism from citizens and stakeholders.
The proposal, contained in the IMF’s latest Article IV Consultation Report on Nigeria, was presented as part of broader efforts to boost government revenue, create fiscal space, and fund development projects and social intervention programmes.
However, the recommendation quickly sparked concerns among many Nigerians, who fear that new taxes on essential services could worsen economic hardship and place additional pressure on households and businesses already struggling with rising costs.
In response to public concerns, the Federal Government clarified that the IMF’s recommendations are advisory in nature and do not constitute government policy. Authorities emphasized that any tax-related decisions would be made through constitutional and legislative processes, taking into account Nigeria’s economic realities and national priorities.
Despite the government’s assurance that no such taxes are currently being considered, opposition to the IMF proposal has continued to grow.
Chairman of the Alliance for Economic Research and Ethics LTD/GTE, Dele Oye, described the suggested taxes as insensitive, arguing that they would further burden millions of Nigerians living below the poverty line.
According to Oye, Nigeria has demonstrated its ability to increase revenue without imposing new taxes, pointing to significant growth in tax collections over the last three years. He warned that introducing fresh levies on fuel and telecommunications would increase living costs and further strain businesses already battling inflation, high energy costs, foreign exchange instability, multiple taxation, and expensive borrowing rates.
He stressed that many companies are already struggling under difficult operating conditions, noting that additional taxes could discourage investment and slow economic growth.
Similarly, Lagos-based legal practitioner and tax expert, Bolu Oyeniyi, questioned the need for new taxes when improved tax administration could yield substantial revenue gains.
He urged the government to focus on strengthening tax compliance, reducing wasteful spending, plugging revenue leakages, formalising more sectors of the economy, and reviewing tax incentives granted to large corporations.
Oyeniyi also warned that taxing telecommunications services could undermine efforts to expand digital access and innovation, while higher taxes on petroleum products could trigger increases in transportation costs and food prices across the country.
He maintained that economic recovery should take precedence over new taxation measures, arguing that policies should encourage business growth and job creation rather than increase financial pressure on citizens.
Adding his voice to the debate, Lagos State civil servant Lanre Adebowale urged the government to be cautious about adopting IMF recommendations, citing Nigeria’s experience with the Structural Adjustment Programme (SAP) introduced during the military administration of General Ibrahim Babangida in the 1980s.
Adebowale argued that policies linked to the IMF contributed to long-term economic difficulties, including currency devaluation, privatization, reduced public spending, and the sale of state-owned enterprises.
He expressed concern that further IMF-backed recommendations could worsen existing economic challenges, particularly at a time when many Nigerians are already grappling with high fuel costs, unreliable electricity supply, and rising telecommunications expenses.
While welcoming the government’s clarification that no additional taxes are being planned, he advised policymakers to prioritize homegrown economic solutions and remain cautious about external policy prescriptions.
The debate highlights growing public sensitivity to tax-related issues as Nigerians continue to navigate economic pressures amid ongoing efforts to stabilize the economy and improve government revenue generation.
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