General News
IMF Urges FG to Introduce Fuel, Telecom Taxes
The International Monetary Fund (IMF) has recommended introducing taxes on fuel products and telecommunications services in Nigeria.
According to the IMF, this is part of broader measures to increase government revenue and create fiscal space for development spending and social interventions.
The international financial organization argued that stronger revenue mobilisation had become increasingly important as Nigeria’s fiscal position remained under pressure despite recent reforms.
This comes as Nigerians are protesting against worsening standard of living made worse by widespread insurgency.
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 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.
A previous attempt by the Federal Government to impose a five per cent excise duty on telecom services met strong resistance from operators, subscribers and consumer advocacy groups before it was suspended and eventually scrapped.
Telecommunications firms had maintained that the industry was already weighed down by multiple taxes, rising energy costs, foreign exchange challenges and infrastructure constraints.
They warned that any additional levy would likely be transferred to consumers through higher call and data tariffs.
Similarly, proposals to tax fuel products have faced opposition from labour unions and private sector organisations amid concerns over the rising cost of living following the removal of petrol subsidies and increases in transport and food prices.
The IMF’s latest recommendation comes as the Fund projects that Nigeria will require stronger revenue mobilisation efforts to sustain planned increases in public spending and provide support for vulnerable households.
According to the report, revenue-enhancing tax policies could generate additional revenue 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 largest contributor, with a projected revenue gain of 0.8 per cent of GDP.
The report also projected that removing pioneer status incentives and revising free zone regulations would generate an additional 0.7 per cent of GDP.
Reforms to capital gains taxation and adjustments to personal income tax bands, allowances and rates were each estimated to 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 contribute another 0.4 per cent.
Notably, the category labelled “others”, which includes telecom excise duties and measures such as a carbon tax on fuel, was projected to generate an additional 0.4 per cent of GDP in revenue.
Beyond new tax measures, the Fund said Nigeria could achieve even greater gains through improved tax administration.
It projected that administrative reforms would generate an additional 3.1 per cent of GDP through better compliance, stronger 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 a further 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.
Expanded VAT input credits, additional zero-rated items and broader exemptions on basic consumption goods were projected to account for 1.7 percentage points of the decline.
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.
Overall, the IMF projected that the combined impact of revenue-enhancing measures, administrative reforms and revenue-reducing policies would result in a net increase in government revenue equivalent to 4.6 per cent of GDP over the medium term.Nigerian investment opportunities
Renewable energy firm Daystar Power Group has expanded its installed solar capacity across West Africa through a partnership with Nestlé, bringing total deployments to 6,884 kilowatt-peak (kWp), or nearly 7 megawatts (MW), in what the company describes as one of the largest commercial and industrial solar partnerships in the region.
Four manufacturing facilities across Nestlé sites in Côte d’Ivoire, Ghana and Senegal are now operational, with installations located in Abidjan, Tema and Dakar.
Daystar Power has installed 3,447 kWp across two sites in Abidjan, Côte d’Ivoire. In Ghana, a 2,547 kWp system powers Nestlé’s Tema factory, while in Senegal an 890 kWp installation operates at the Dakar facility.
The company said each system is designed to deliver measurable environmental impact, including reduced greenhouse gas emissions and improved energy resilience.
The installations are tailored to local operational and grid conditions to ensure reliable renewable energy supply while supporting Nestlé’s net-zero ambitions and its commitment to reducing greenhouse gas emissions.
“Nearly 7MW across four Nestlé facilities is a number we are proud of, but what it represents matters more than the figure itself. It means that one of the world’s most demanding manufacturers has tested our model, trusted it, and come back. Our job now is to keep earning that across every market where industry needs energy it can count on,” said Yischai Beinisch, CEO of Daystar Power Group.
Samer Chedid, CEO of Nestlé Central and West Africa Region, said: “This investment reflects our commitment to building a business that not only grows but does so responsibly.
“By advancing solar energy projects in Ghana, Côte d’Ivoire and Senegal, we are embedding sustainability into our growth, reinforcing our role as a force for good, creating long-term value for communities and ensuring that our footprint actively contributes to a cleaner, more resilient future.”
The National Credit Guarantee Company Limited (NCGC) and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) have signed a Memorandum of Understanding (MoU) aimed at supporting access to finance for Micro, Small and Medium Enterprises (MSMEs) in Nigeria.
The agreement was signed at the NCGC headquarters in Abuja and outlines areas of cooperation between the two agencies, including financial literacy programmes, credit guarantee support, capacity building, and other initiatives targeted at small businesses.
Speaking at the signing ceremony, NCGC Managing Director and Chief Executive Officer, Dr. Bonaventure Okhaimo, said the partnership is intended to provide a framework for expanding financing opportunities available to MSMEs.
According to him, small and medium-sized enterprises play a significant role in economic activity and employment generation across the country.
Okhaimo said NCGC has facilitated ₦32.78 billion in credit and provided over ₦13.09 billion in guarantees through its partnerships with financial institutions. He added that 1,478 businesses and entrepreneurs have benefited from the financing interventions, with 1,682 jobs reportedly created or sustained.
Also speaking, SMEDAN Director-General, Charles Odii, said the collaboration would enable the agency to connect more small businesses with available financing opportunities, particularly Nano and Micro enterprises that often face challenges accessing credit.
The two organisations said the partnership would also involve stakeholder engagement and awareness campaigns to provide information on financing options and the use of credit guarantees in lending arrangements.
The agreement forms part of ongoing efforts by both agencies to support enterprise development and improve access to financial services for small businesses across the country.
Observers say access to finance remains one of the major constraints facing Nigerian MSMEs, making collaborations between public institutions an important aspect of broader economic development initiatives.
Elon Musk is no longer a trillionaire after a sharp global sell-off in technology stocks wiped an estimated $500bn (£379bn) from his personal fortune.
Elon Musk
The billionaire entrepreneur Elon Musk had recently become the first individual to reach the trillion-dollar milestone following a record-breaking listing surge for his rocket company SpaceX earlier this month.
However, shares in SpaceX have since fallen by around 30% from their peak, while Tesla was also caught in a broader technology market downturn on Tuesday, June 23.
His net worth now stands at $957.1bn, according to analysis by Bloomberg, while calculations by Forbes suggest his fortune previously peaked at $1.45tn last week.
The drop in Musk’s wealth over the past week exceeds the total fortune of Larry Page, whose estimated net worth stands at just under $297bn.
The decline comes amid two consecutive days of losses on Wall Street, with more than $89bn wiped from Tesla’s market value after its shares fell 5.8% on Tuesday. Chipmaker Nvidia also dropped 4.1% during the same session.
Traders have warned that further volatility may follow after memory-chip producer Micron Technology prepares to release its third-quarter results, amid concerns that artificial intelligence valuations may be overheating.
Investment bank Goldman Sachs cautioned that AI-linked stocks could be vulnerable if there are signs of slowing investment from major tech firms.
Ben McKeown, an investment manager at Dowgate Wealth, said Musk’s fortune remains highly exposed due to its concentration in two major holdings.
He said: “The old adage is, you concentrate to build wealth and diversify to keep it. Musk is the most extreme example of this.
Almost his entire net worth sits in Tesla and SpaceX, which have been extremely volatile, especially SpaceX as the shareholder base starts to be unlocked and becomes free to sell.”
Musk had briefly become the world’s first trillionaire on June 12 following the listing surge of SpaceX, which saw its shares jump as much as 67% in its first three days of trading after an IPO that valued the company at more than $1.8tn.
However, the stock later fell for three consecutive sessions, erasing around $928bn in market value from a peak of $2.9tn to just over $2tn, before a slight recovery.
The scale of his recent wealth decline is now considered the largest on record, surpassing his previous loss in 2022 when his fortune fell by an estimated $165bn amid a slump in Tesla shares.
Another billionaire affected by recent market turbulence is Larry Ellison, whose net worth peaked at around $400bn last September before falling to approximately $210bn following a major sell-off in Oracle shares.
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