The International Monetary Fund (IMF) has advised the Nigerian government to introduce new taxes on telecommunications services and fuel products as part of efforts to increase government revenue.
The recommendation was contained in the IMF’s latest Article IV Consultation Report on Nigeria. According to the Fund, Nigeria needs to generate more revenue in order to create enough financial resources for infrastructure projects, social welfare programmes, and other development needs.
The IMF noted that while Nigeria’s recently approved tax reforms are expected to improve revenue collection, more measures may still be necessary in the coming years.
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Among its recommendations, the IMF suggested that the government should:
Introduce excise duties on telecommunications services such as voice calls and data usage.
Extend Value Added Tax (VAT) to fuel products.
Increase the VAT rate in the future if necessary.
Review and reduce certain tax exemptions currently enjoyed by some sectors.
Strengthen tax administration through digital technology
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