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.

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.

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.

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.

By Yusuf Danjuma Yunusa

The United Kingdom and Nigeria have unveiled a new £15 million Growth Programme aimed at unlocking private investment and accelerating economic transformation between them.

The British High Commission made this known in a statement issued on Friday in Abuja.

It said the two countries unveiled the initiative during the just concluded two-day visit to Nigeria by the UK’s Minister for Africa and International Development, Baroness Jenny Chapman.

According to the statement, Chapman’s visit, spanning Abuja and Kaduna, underscores the breadth and depth of the UK–Nigeria strategic partnership and marked a significant step toward both countries’ shared priorities.

It said that alongside the growth programme, the UK also announced deeper collaboration on Nigeria’s digital economy through an initiative called the SPRIRET, which is delivered under the UK’s Digital Access Programme.

“SPRIRET will support digital governance reforms across five Nigerian states, reducing regulatory barriers and enabling greater investment and innovation in broadband, digital services and emerging technology,” it said.

Chapman said her visit had reinforced everything she believed about the UK–Nigeria partnership.

According to her, it is “deep, real, and moving in the right direction.”

“From launching our new Growth Programme with Minister Oyedele, to meeting frontline health workers in Kaduna, every conversation this week has shown me a country full of ambition and a partnership that is genuinely delivering for both sides,” she said.

Mr Taiwo Oyedele, Minister of Finance and Coordinating Minister of the Economy, said the UK-Nigeria relationship extended beyond traditional ties and was now focused on development, growth, and shared prosperity.

“The UK–Nigeria Growth Programme helps bring this partnership to life.

“It will support capital market development, technology investment, small businesses, and technical assistance.

“We look forward to seeing how these opportunities deliver lasting benefits and drive progress for both countries,” Oyedele said.

The mission also noted that Chapman met with the Minister of Industry, Trade and Investment, Dr Jumoke Oduwole, with discussions covering progress under the Enhanced Trade and Investment Partnership (ETIP).

In Kaduna, Chapman met with Gov. Uba Sani to take stock of over 20 years of UK–Kaduna partnership and explore how cooperation can deepen shared priorities.