Govt May Need to Hike VAT, Introduce Telecom Tax – IMF

The International Monetary Fund (IMF) has advised the Nigerian government to consider increasing the Value Added Tax (VAT) rate and introducing excise duties on telecommunications services as part of efforts to boost revenue generation and create fiscal space for development spending.
IMF in its 2026 Article IV Consultation Report on Nigeria warned that despite recent tax reforms, additional revenue measures would likely be required over the medium term to support critical social and infrastructure spending.
According to the IMF, Nigeria’s revenue mobilisation efforts must go beyond administrative improvements to address the country’s persistently low revenue-to-GDP ratio and rising e...