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IMF Recommends New Taxes on Fuel Products, Telecom Services in Nigeria

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By Yusuf Danjuma Yunusa

The International Monetary Fund has recommended introducing taxes on fuel products and telecommunications services in Nigeria as part of broader measures to increase government revenue and create fiscal space for development spending and social interventions.

The recommendation was contained in the IMF’s 2026 Article IV Consultation report on Nigeria, where the Fund argued that additional tax measures would be needed over the medium term despite the recent overhaul of the country’s tax system.

“Further tax policy changes will likely be needed—such as increasing the VAT rate, extending VAT to fuel products, rationalising tax expenditures in particular VAT exemptions on extractive industries and some customs duties, and introducing telecom excises—to complement administrative gains,” the IMF said.

The Washington-based institution, however, cautioned that the timing of any new taxes must take into account Nigeria’s rising poverty levels and worsening food insecurity.

“The timing of reforms must consider the poverty and food insecurity situation and ensure that the cash transfer system is in place and funded,” the Fund added.

The recommendation is likely to trigger fresh debate across the country, given the sensitivity surrounding fuel prices and telecommunications costs.

A previous attempt by the Federal Government to introduce a five per cent excise duty on telecom services faced widespread opposition from operators, subscribers and consumer advocacy groups before it was eventually suspended and later scrapped.

Telecommunications companies had argued that the sector was already burdened by multiple taxes, rising energy costs, foreign exchange pressures and infrastructure challenges, warning that any additional levy would ultimately be passed on to consumers through higher call and data charges.

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Similarly, proposals linked to fuel taxation have generated opposition from labour unions and private sector groups amid concerns over rising living costs following the removal of petrol subsidies and increases in transport and food prices.

The IMF’s latest recommendation comes as it projects that Nigeria will need stronger revenue mobilisation efforts to sustain planned increases in public spending and support vulnerable households.

According to the report, revenue-enhancing tax policies could generate additional revenues equivalent to 3.9 per cent of Gross Domestic Product within three years of implementation. The Fund identified a two-percentage-point increase in the Value Added Tax rate as the single largest contributor, with an estimated revenue gain of 0.8 per cent of GDP.

It also projected that removing pioneer status incentives and revising free zone regulations would generate another 0.7 per cent of GDP, while reforms to capital gains taxation and adjustments to personal income tax bands, allowances and rates would each contribute 0.6 per cent of GDP.

The IMF further estimated that a top-up tax on multinationals and large firms could raise 0.5 per cent of GDP, while rationalising investment allowances would add another 0.4 per cent.

Notably, the category labelled “others”, which includes telecom excise duties and other measures such as a carbon tax on fuel, was projected to contribute an additional 0.4 per cent of GDP in revenue gains.

Beyond new tax measures, the Fund said Nigeria could generate even larger gains through stronger tax administration.

It projected that administrative reforms would yield an additional 3.1 per cent of GDP through improved compliance, enforcement and efforts to reduce informality in the economy.

According to the report, measures such as fiscalisation, electronic invoicing and cross-validation of tax deductions could generate 1.5 per cent of GDP, while expanded tax identification registration and consolidation of taxpayer databases could contribute another 1.6 per cent of GDP.

The IMF acknowledged that some of Nigeria’s recently enacted tax reforms would reduce government revenue in the short term because they were designed to support households and small businesses.

It estimated that revenue-reducing measures would lower revenues by 2.4 per cent of GDP, with expanded VAT input credits, additional zero-rated items and broader exemptions on basic consumption goods accounting for 1.7 percentage points.

Lower corporate income tax obligations for smaller firms would reduce revenues by 0.4 per cent of GDP, while lower personal income tax rates and expanded exemptions for low-income earners would account for another 0.3 percentage point reduction.

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Civilian Sponsors Were Indispensable to Every Successful Coup in Nigeria, Says Babangida

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General Ibrahim Badamasi Babangida

 

By Yusuf Danjuma Yunusa

Former military Head of State, General Ibrahim Badamasi Babangida (retd.), has asserted that every successful military coup in Nigeria’s history has depended on active support or sponsorship from civilians, challenging the long-held narrative that the country’s political upheavals were purely soldier-led affairs.

In an interview with Badeggi 90.1 FM in Minna, aired ahead of his 85th birthday on Monday, the former president stated that wealthy civilians have historically played instrumental roles in funding and facilitating military takeovers.

“No successful coup in Nigeria’s history had occurred without civilian involvement,” Babangida declared, according to a transcript of the interview cited by THISDAY.

The former leader used the occasion to offer a rare, personal reflection on the 1985 coup plot against his administration, which led to the trial and execution of his close friend and cabinet colleague, Major-General Mamman Vatsa, then Minister of the Federal Capital Territory.

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Babangida recounted that he initially struggled to believe intelligence reports linking Vatsa to the conspiracy, given their decades-long friendship. The two had grown up together, attended Bida Middle School, and enlisted in the military in the same year.

He said he summoned both Vatsa and General Mohammed Gado Nasko to his office after a senior officer implicated them. “When they arrived, I asked them about the reports that they had been mentioned in a plot to topple my government. Both of them denied any involvement,” Babangida recalled.

A military commission of inquiry was subsequently established. While Nasko was cleared, the panel found evidence against Vatsa. Babangida described himself as “shocked, devastated and deeply disappointed” by the findings but insisted that military law left him no room for clemency.

“There was nothing I could do to exonerate him from the consequences prescribed by military law. My hands were tied. That was how I lost my brother, General Mamman Vatsa,” he said. Vatsa was executed by firing squad in March 1986.

Turning to contemporary issues, Babangida urged Nigerians to remain patient and supportive of President Bola Tinubu’s administration amid ongoing economic hardships and security crises.

He expressed confidence that the government’s current policies would eventually yield positive results, calling for national hope and resilience during the challenging transition.

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Residents of Lokon Kango in Mandawari Area, Kano, Seek Government Intervention Over Poor Drainage

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Residents of Lokon Kango in the Mandawari area of Kano metropolis have called on the government to intervene over the deplorable state of drainage channels in their community, which they say has led to the collapse of two houses.

Mallam Anas Tanga, one of the coordinators of community sanitation efforts in the area, said residents have been doing their best to clear the drains, but their efforts are not enough.

“We are doing our best, alongside other youths. For years, we have been involved in clearing these drains,” he said. “But the extent of the damage is such that even after we do the work, it doesn’t take long before the problem returns.”

On his part, a community elder, Mallam Abubakar, told our reporter how the poor drainage system contributed to the collapse of at least two houses.

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“These houses you see here collapsed as a result of the lack of proper drainage,” he said. “Anytime there is heavy rain, especially at night, we live in fear.”

He appealed to relevant stakeholders to come to their aid.

Malama Ladidi, one of the residents whose home is flooded during the rainy season, also lamented her situation.

“The rainy season is terrible for us and our children,” she said. “We go through a lot of hardship. We don’t even sleep until we have drained the water that enters our rooms. This is a big problem. The youths are trying their best, but the government must step in.”

Finally, one of the youths in the community spoke about the role they played during elections, only to be neglected afterwards.

“All our neighboring areas have had this work done, except us. We are really suffering,” he said. “We helped bring this government to power. We contributed, but now we are not benefiting from anything.”

The residents said they had earlier reported the problem to authorities, particularly the Gwale Local Government, but nothing had been done.

In an effort to get the government’s side of the story, we visited the office of the Gwale Local Government Chairman, Hon. Abubakar Mu’azu Mojo. However, he was not available.

We also tried to reach him by phone and text message, but as of the time of filing this report, we had not received any response from him.

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Kano Governor Yusuf Visits Best Choice Specialist Hospital, Commends Staff, Managements

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The executive governor of Kano State Alhaji Abba Kabir Yusuf, has visited Best Choice Specialist Hospital in Kano to assess the quality of healthcare services being provided to residents and commend health workers for their commitment to saving lives.

The governor made the visit on Friday night as part of his routine inspections of healthcare facilities to assess service delivery and observe first-hand how patients are being attended to, particularly during night hours.

During the visit, Governor Yusuf inspected patients receiving treatment at the hospital and toured different sections of the facility accompanied by the doctor on duty and other members of staff.

The governor observed the activities of health workers and assessed the manner in which patients were being attended to at the time of his visit.

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He commended the staff of Best Choice Specialist Hospital for what he described as their dedication to providing healthcare services to the people of Kano State.

Governor Yusuf also acknowledged the contribution of private healthcare providers to the state’s healthcare system, stressing the importance of collaboration between government and private-sector operators in improving healthcare delivery.

The visit, according to the governor’s entourage, demonstrated that the administration’s concern for healthcare extends beyond government-owned facilities to private hospitals and other health institutions contributing to the wellbeing of residents.

Governor Yusuf thanked the management and staff of Best Choice Specialist Hospital for their efforts and commitment to saving lives.

As a gesture of encouragement, the governor presented the hospital staff with a special award in recognition of their service and dedication.

The governor’s visit also provided an opportunity to appreciate the role of private healthcare providers in complementing government efforts to expand access to medical services across Kano State.

Best Choice Specialist Hospital, located at Tal’udu Junction, opposite Sheikh Al Rayyan School in Kano, operates round the clock and provides healthcare services through qualified doctors and other medical personnel across its various departments.

The governor’s inspection forms part of his administration’s broader emphasis on monitoring healthcare delivery and ensuring that residents receive appropriate medical attention in both public and private health facilities across the 44 local government areas of Kano state.

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