By Merit Ibe

The Chairman of the Alliance for Economic Research and Ethics LTD/GTE, Dele Oye, has condemned the International Monetary Fund’s (IMF) recommendation that the Nigerian government imposes new taxes on petroleum products and telecommunications services, arguing that such insensitive measures would further cripple businesses and deepen hardship for over 140 million poor Nigerians.

In a statement, Oye insisted that Nigeria has the ability to grow its revenue without introducing additional taxes on struggling households and businesses, noting that tax collections rose by more than 180 per cent in three years, from N10.1 trillion in 2022 to N28.3 trillion in 2025. According to Oye, imposing fresh taxes on fuel and telecom services at a time when an estimated 140 million Nigerians live below the poverty line would amount to placing an even heavier burden on citizens already grappling with inflation, high living costs and weak purchasing power. He argued that Nigerian businesses are already weighed down by what he described as “hidden taxes,” including high borrowing costs, unreliable electricity, multiple levies imposed at different levels of government, foreign exchange volatility and security-related expenses.

He noted that commercial lending rates exceeding 35 per cent and soaring energy costs have significantly increased the cost of doing business, warning that additional taxes could discourage investment and slow economic growth.

The Alliance also questioned the rationale for introducing new taxes when improvements in tax administration could generate substantial additional revenue, citing the IMF’s own assessment that administrative reforms alone could deliver gains comparable to those expected from new tax measures.

Rather than imposing fresh levies, Oye urged the Federal Government to strengthen tax compliance, reduce the cost of governance, eliminate revenue leakages, formalise more of the informal economy and review tax incentives enjoyed by large corporations and extractive industries.

He further warned that taxing telecommunications would undermine digital inclusion and financial innovation, while additional taxes on fuel could ripple through the economy by increasing transport costs and driving up food prices.

Calling on the government to prioritise economic recovery over new taxation, Oye said Nigeria should focus on creating an environment that enables businesses to grow and create jobs instead of placing additional burdens on consumers and entrepreneurs.

“The patient needs recovery time, not another surgery,” he said, urging the government to reject the IMF’s recommendations on telecom and fuel taxes and pursue reforms that expand the economy rather than deepen hardship.

Credit: thesun.ng