en.Wedoany.com Reported - Abuja, Nigeria — The International Monetary Fund (IMF), in its latest Nigeria economic assessment policy brief, has recommended that the country's federal government impose new taxes on petroleum products and telecommunications services to expand non-oil revenue sources and bridge the widening fiscal deficit.

The IMF noted that Nigeria's tax-to-GDP ratio remains among the lowest globally, constraining the government's ability to fund critical infrastructure and social safety nets. To address this gap, the organization proposed levying a specific excise tax on premium motor spirit (commonly known as petrol), alongside a dedicated electronic communications tax on voice calls and data services. The IMF believes these two sectors, due to their widespread daily use, offer the highest capacity for sustainable revenue generation.

Beyond fuel and telecom, the policy roadmap also urged Nigeria's fiscal authorities to intensify structural tax reforms, including improving the efficiency of Value Added Tax (VAT) collection, streamlining corporate tax exemptions, and expanding the personal income tax base to cover the vast informal economy sector. Economic advisors stated that, given global market volatility, relying on crude oil revenue is no longer a viable long-term strategy, and mobilizing domestic resources is crucial for stabilizing the economy, managing rising debt service costs, and curbing inflationary pressures.

This proposal comes at a highly sensitive time for Africa's most populous economy. While citizens are already bearing high living costs, taxing transport fuel and digital communications could face strong resistance from organized labor and civil society groups, following policy adjustments such as the removal of fuel subsidies and the unification of foreign exchange windows. Financial analysts warn that while the proposed taxes could boost state coffers, they risk further eroding consumer purchasing power and increasing operating costs for small and medium-sized enterprises heavily reliant on affordable fuel and digital connectivity.

Currently, Nigeria's Federal Ministry of Finance and the Federal Inland Revenue Service have yet to officially comment on whether to adopt these controversial revenue proposals.

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