The International Monetary Fund (IMF) has recommended that Nigeria introduce taxes on fuel products and telecommunications services to raise government revenue, according to its 2026 Article IV Consultation report – even as Nigerians protest a worsening standard of living amid widespread insurgency.
The IMF called for measures including raising the VAT rate, extending VAT to fuel, and introducing telecom excise duties, while cautioning that timing must account for rising poverty and food insecurity, and that cash transfer systems must first be in place.
Both proposals face strong headwinds. A previous 5% telecom excise duty was scrapped after fierce resistance from operators and consumers, while fuel taxation remains deeply unpopular following petrol subsidy removal and surging transport and food costs.
The Fund projects that combined tax policy changes, alongside administrative reforms such as electronic invoicing and expanded taxpayer registration, could deliver a net revenue gain of 4.6% of GDP over the medium term — with the telecom and fuel measures alone contributing around 0.4% of GDP.
