The International Monetary Fund has recommended that Nigeria introduce taxes on fuel products and telecommunications services, including a carbon tax on fuel, as part of broader fiscal reforms. The recommendation comes in the IMF's 2026 Article IV Consultation report on Nigeria, which projects that revenue-enhancing tax policies could generate additional revenue equivalent to 3.9 percent of GDP within three years. The IMF notes that a carbon tax on fuel is included in a category of measures projected to raise 0.4 percent of GDP. However, the Fund also cautions that the timing of new taxes must account for rising poverty levels and food insecurity in Nigeria. A previous attempt to impose a five percent excise duty on telecom services was suspended after resistance from operators and consumer groups. The report estimates that administrative reforms, including better compliance and enforcement, could generate an additional 3.1 percent of GDP. The IMF projects a net revenue increase of 4 percent of GDP when combining revenue-enhancing measures, administrative reforms, and revenue-reducing policies designed to support households and small businesses.
