Dele Oye, Chairman of the Alliance for Economic Research and Ethics, has condemned the International Monetary Fund's (IMF) recommendation that the Nigerian government impose new taxes on petroleum products and telecommunications services. He argued that such measures would further cripple businesses and deepen hardship for over 140 million poor Nigerians.
Revenue Growth Without New Taxes
In a statement, Oye insisted that Nigeria can grow its revenue without introducing additional taxes on struggling households and businesses. He noted 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.
Burden on Citizens and Businesses
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 place 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 by different levels of government, foreign exchange (FX) volatility, and security-related expenses.
He noted that commercial lending rates, which exceed 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.
Alternative Revenue Sources
Oye also questioned the rationale for introducing new taxes when improvements in tax administration could generate substantial additional revenue. He cited 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, he 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.
Impact on Digital Inclusion and Food Prices
He 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.
