Fuel, calls and data could get costlier as the IMF advises Nigeria on new taxes

• The IMF recommended extending VAT to petrol and introducing new excise duties on mobile calls and data.

• If adopted, these measures will directly increase transportation costs, food prices, and digital services across Nigeria.

• These recommendations are currently non-binding advice, and the Federal Government has not officially passed them into law.

Nigerians may soon face higher costs on fuel, phone calls, and mobile data if the Federal Government adopts a fresh set of recommendations from the International Monetary Fund (IMF).

In its latest assessment of Nigeria's economy, the IMF urged the government to introduce new revenue-generating measures, including extending Value Added Tax (VAT) to fuel products and imposing excise duties on telecommunications services.

The recommendations have sparked online discussions, with many Nigerians expressing concerns about what such taxes could mean for households already struggling with the rising cost of living.

According to the IMF, Nigeria needs to increase government revenue to support public spending, reduce borrowing, and strengthen the country's finances.

To achieve this, the global lender suggested several measures, including:

• Applying VAT to petrol and other fuel products.

• Introducing excise taxes on telecommunications services.

• Gradually increasing VAT rates over time.

• Reducing certain tax exemptions and customs duty waivers.

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The IMF argued that Nigeria's tax-to-GDP ratio remains one of the lowest in the world and that the government needs more revenue to fund critical sectors such as infrastructure, healthcare, and education.

If implemented, the proposed taxes could have a direct impact on everyday expenses.

Fuel remains a major driver of transportation and business costs across Nigeria. Any additional tax on fuel products could potentially increase the cost of moving goods and people, which may eventually affect the prices of food and other essential items.

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The telecommunications tax proposal has also attracted attention because millions of Nigerians rely heavily on mobile calls, internet subscriptions, and digital services for work, education, and communication.

Additional taxes on telecom services could increase the already high cost of airtime, voice calls, SMS, and mobile data plans.

The IMF recommendations come at a sensitive time.

Nigeria has been battling high inflation, rising food prices, and declining purchasing power. Many citizens are still adjusting to the effects of fuel subsidy removal and currency reforms introduced by the government.

As a result, any discussion about new taxes is likely to face strong public scrutiny.

The debate intensified after reports emerged that Nigeria ranked at the bottom of Numbeo's 2026 Quality of Life Index, which measures factors such as purchasing power, affordability, safety, healthcare, and pollution levels.

While the index reflects only one methodology and does not represent all global quality-of-life assessments, it has added to concerns about the economic challenges facing ordinary Nigerians.

For now, the IMF's recommendations are not government policy.

The IMF can advise member countries, but it does not have the power to impose taxes on Nigeria. The final decision rests with the Federal Government, the National Assembly, and relevant regulatory authorities.

Whether the recommendations will be adopted fully, partially, or rejected remains unclear.

The key question remains: can the government raise more money without making daily life even more expensive? That debate is likely to continue in the coming weeks.