IMF Calls for Fuel and Telecom Levies to Boost Nigeria’s Revenue

The IMF’s 2026 Article IV consultation urges Nigeria to introduce new taxes on fuel and telecommunications to raise revenue for development and social spending. It recommends raising the VAT rate, extending VAT to fuel products, rationalising exemptions in extractive industries, and adding excise duties on telecom services. The Fund warns implementation must consider high poverty and food insecurity, with cash transfers in place first. Past efforts to impose telecom levies and remove fuel subsidies met strong opposition from operators, unions and consumers. Stakeholders warn extra charges would be passed on through higher call, data and transport costs. The report estimates revenue-enhancing measures could add 3.9% of GDP, with administrative reforms boosting compliance for a further 3.1%. It calls for balanced timing to shield vulnerable Nigerians while strengthening fiscal capacity.

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