By Chiagoziem Abosi
Edited by Bababunmi Agbebi
Residents of Ikeja could face higher costs for phone calls, internet subscriptions, transportation, and everyday goods if recommendations by the International Monetary Fund (IMF) on Nigeria’s tax system are eventually adopted by the Federal Government.
In its 2026 Article IV Consultation Report on Nigeria, the IMF advised the country to consider additional tax measures, including extending Value Added Tax (VAT) to fuel products and introducing excise duties on telecommunications services. The Fund said the measures could help Nigeria increase government revenue and create more funding for development projects and social intervention programmes.
The recommendation has already sparked debate across the country, particularly because fuel and telecommunications are services used daily by millions of Nigerians.
However, the Fund also cautioned that any such reforms should take into account rising poverty levels and food insecurity, stressing that support systems for vulnerable Nigerians should be in place before new taxes are introduced. Importantly, the recommendation is not a new government policy. It is advice from the IMF, and the Federal Government has not announced any decision to introduce new telecom taxes or VAT on fuel products.
For many residents of Ikeja, the proposal hits close to home.
The average resident relies heavily on mobile data, airtime, ride-hailing services, public transportation, and fuel-powered businesses.
If telecommunications companies are required to pay additional taxes, operators may eventually pass some of those costs to consumers through higher call, SMS, and data charges. Industry stakeholders have previously warned that additional levies on the sector often translate into higher costs for subscribers. Similarly, extending VAT to fuel products could have a ripple effect across the economy.
Fuel plays a major role in transportation, logistics, power generation, and business operations. Any increase in fuel-related costs could affect transport fares, food prices, delivery services, and operating expenses for small businesses.
In a commercial hub like Ikeja, where thousands of residents commute daily and many businesses depend on generators due to power challenges, the impact could be felt across several sectors.
The IMF maintains that Nigeria needs stronger revenue mobilisation to fund development projects, strengthen public services, and support vulnerable households.
According to the report, additional tax reforms, combined with improved tax administration, could significantly increase government revenues over the next few years. But for many Nigerians already grappling with rising living costs, the conversation goes beyond government revenue.
The bigger question remains whether households and businesses can absorb additional costs at a time when inflation, transportation expenses, and utility bills continue to put pressure on family budgets.
For now, the recommendation remains just that, a recommendation. However, the debate it has triggered highlights the delicate balance between increasing government revenue and protecting citizens from further economic strain.
As discussions continue, many residents of Ikeja will be watching closely to see whether these proposals remain on paper or eventually become policy.
If telecom taxes or VAT on fuel products are introduced, how do you think it would affect your daily life and business? Share your thoughts in the comments.
