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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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Abacha’s Death Fishy, Abdulsalami Reveals in Autobiography

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By Yusuf Danjuma Yunusa

A Former Head of State, Gen. Abdulsalami Abubakar (retd.), said the hours surrounding the death of Gen. Sani Abacha on June 8, 1998, left him with a lingering sense that “something was fishy.”

He disclosed that he and the late Chief of Army Staff, Lt-Gen. Ishaya Bamaiyi, were mysteriously locked inside a waiting room at the Presidential Villa for nearly an hour before being informed that the Head of State had died.

The revelations are contained in Chapter 19 of Abubakar’s 264-page, 27-chapter autobiography titled ‘Call of Duty,’ launched on Saturday at the Aso Rock Villa, Abuja.

The presentation was held to mark the former Head of State’s 84th birthday and was attended by President Bola Tinubu who was represented by Vice President Kashim Shettima as Special Guest of Honour.

Abubakar wrote that the chain of events began with a phone call on the morning of Monday, June 8, 1998, while he was waiting to be informed about his own impending retirement from the military after 35 years of service.

He wrote, “On Monday, 8 June, I was waiting for him concerning the assignment he said he had for me. I received a call very early in the morning that he was going to be retired. There was no other way to interpret that.

“I quietly prayed that he would not send me to Togo where there was going to be an ECOWAS summit. I was tired of going everywhere.

“I was effectively in detention, I didn’t want to travel to Togo. I told my wife I was not happy with the call because I was still hoping I wouldn’t have to travel to Togo.”

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Later that morning, he received another instruction to meet the Head of State.

“As I entered the bathroom, there was another call. I was told that the Head of State wanted to see me.

“Out of frustration, I asked if it was travelling to Togo and the caller replied that it was on a different issue.

“Because of the urgency, I didn’t wear my uniform. I wore a tracksuit and slippers and proceeded to the Presidential Villa. On getting to his residence, I was told he was not in the office,” he stated.

At the Villa, Abubakar said he could not make sense of events that followed as they were strange.

He narrated, “One of the guards informed me that anytime I went to see him, regardless of who was with him, I would still go in. After waiting for about half an hour, I wondered why he would be that early in the office.

“As I was climbing the stairs, (One of the guards informed me) that Abacha said I should stay in the waiting room. What struck me was that Abacha said I should stay in the waiting room.

“Major-General Ishaya Bamaiyi joined me shortly after. We waited for about an hour. I decided to go and see Abacha by any means because I could not understand why we should be kept that long.”

According to him, the door of the waiting room had been locked without the knowledge of the two men.

“I asked Bamaiyi if he was aware that we had been locked inside.

“Something kept telling me that something was wrong but I could not place a finger on it,” he stated.

He said when the door was eventually opened, it was not by an aide, but by the country’s most senior police officer.

“After some time, the door was opened and the Inspector-General of Police, Alhaji Ibrahim Coomassie, came in.

“He said: ‘Let’s go.’ We walked towards the office and I informed him that I was told Abacha was at the residence.

“It was at this stage that he informed me that Abacha was dead. I was shocked. I asked him what happened and he insisted we proceed first. He did not tell me anything else,” said the former Head of State.

Abubakar described arriving at Abacha’s residence and being confronted with the reality of the moment.

According to him, “When we got to the residence, I asked to see Abacha’s body. I was told it was inside. I entered the room and removed the covering.

“I was in shock at the sudden development. I prayed for him and left the room. Then lots of conversations began.”

He recalled the chaotic scene and conversations surrounding succession that unfolded around him as senior figures converged on the residence.

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CAN Declares Black Sunday, Mourns Insecurity Victims

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By Yusuf Danjuma Yunusa

The Christian Association of Nigeria on Sunday declared a nationwide Black Sunday in honour of victims of insecurity across the country, describing the situation as a national tragedy that has left countless families devastated by violence, terrorism, kidnapping and banditry.

In a message to Christians, CAN President, Archbishop Daniel Okoh, said the observance was aimed at mourning the men, women, children, clergy, farmers, students and entire communities whose lives had been affected by the worsening security situation in the country.

The association said, “Today, we are not only mourning; we are speaking with one voice. Our nation is bleeding, and the Church cannot remain silent while innocent lives are lost and families live in fear.”

According to CAN, the Black Sunday observance coincided with the celebration of Democracy Day, noting that security remained central to the success of Nigeria’s democratic journey.

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“Democracy is founded on the sanctity and dignity of human life, the rule of law, justice, and the protection of citizens. Therefore, there can be no more fitting way to honour the sacrifices that birthed our democracy than by recommitting ourselves to building a nation where every Nigerian can live, work, worship, and travel in safety,” the association stated.

The Christian body expressed solidarity with bereaved families, displaced persons, victims of attacks and others traumatised by insecurity, while praying for divine comfort, healing and justice.

Quoting Matthew 5:4, CAN said, “Blessed are those who mourn, for they shall be comforted,” adding that Christians across the country were united in prayer for those affected by the violence.

The association also urged governments at all levels to take urgent and sustained measures to address the security challenges confronting the nation.

“We call on the government on all levels to take urgent, decisive, and sustained measures to secure lives and property across our nation. The protection of citizens is a sacred responsibility entrusted to those in authority and must be treated with the utmost seriousness,” it said.

CAN further called on churches, Christian schools, hospitals, mission institutions and other faith-based organisations to strengthen security measures around their facilities and communities.

“Security awareness, preparedness for emergency situations, collaboration with local security networks, and vigilance at all times have become necessary responsibilities in the face of prevailing threats,” it stated.

The association urged Nigerians not to surrender to fear but to remain united in pursuit of peace, justice and national healing.

“Let this day deepen our compassion, strengthen our unity, and renew our commitment to peace, justice, and national healing. Let us continue to pray fervently for our nation, support affected families and communities, and refuse to surrender to fear,” CAN added.

Nigeria has continued to grapple with widespread insecurity, including terrorism, banditry, kidnapping and communal violence, resulting in thousands of deaths and displacement of communities across several states.

In response to the persistent attacks, the Christian Association of Nigeria declared a nationwide Black Sunday to mourn victims and draw attention to the country’s worsening security challenges.

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UNICEF, Stakeholders Champion Child Development Through Play in Kano

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As part of activities marking the 2026 International Day of Play (IDOP), the United Nations Children’s Fund (UNICEF), on Thursday organized a commemorative event at Kuka Bulukiya Primary School in Dala Local Government Area of Kano State.

The event, held under the theme, “Protect Play, Protect Childhood,” brought together pupils, teachers, community leaders and other stakeholders to highlight the importance of play in the growth, learning and overall well-being of children.

Speaking at the event, UNICEF’s Education Specialist, Mustapha Shehu emphasized that play is a fundamental right of every child and an essential component of healthy physical, emotional and cognitive development.

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He called on governments, schools, parents and communities to create safe and inclusive spaces where children can learn and thrive through play.

Representing the Permanent Secretary of the Kano State Ministry of Education, Alhaji Sagir Danbare, in his remarks welcomed participants and underscored the importance of play in every learning environment, noting its positive impact on children’s physical, emotional and cognitive development.

In his remarks, the Chairman of Dala Local Government Area, Alhaji Surajo Ibrahim Imam commended organizers of the programme and expressed satisfaction with the state of education in the area.

He noted that the local government had recorded little or no complaints regarding education, adding that most observations and feedback received were geared towards improving and developing the sector.

The celebration featured various recreational and educational activities aimed at promoting children’s rights and raising awareness about the need to safeguard childhood experiences through play and social interaction.

The International Day of Play is observed annually to emphasize the critical role of play in nurturing creativity, resilience and lifelong learning among children. The 2026 theme, “Protect Play, Protect Childhood,” reinforces the need to preserve opportunities for play as a means of ensuring the healthy development and well-being of children worldwide.

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