Stakeholders in Ebonyi caution that proposed levies on petroleum products and telecommunications services may worsen inflation, hurt small businesses and slow economic growth.
Abakaliki, Ebonyi State: Experts have warned that proposed taxes on fuel and telecommunications services could worsen hardship and intensify inflationary pressure in Nigeria.
The stakeholders spoke separately to the News Agency of Nigeria (NAN) on Wednesday in Abakaliki while reacting to the International Monetary Fund’s recommendation that Nigeria should extend Value-Added Tax (VAT) to petroleum products.
The IMF also recommended excise duties on telecommunications services as part of measures to boost revenue generation.
Mr Chukwuemeka Nwankwo, a tax administrator, said the proposal could help strengthen government revenue and reduce borrowing, but stressed that caution was necessary.
“Nigeria must expand its revenue sources, but taxing essential services requires caution,” Nwankwo said.
He warned that citizens should not be placed under unbearable financial pressure through additional taxes.
Another tax administrator, Mrs Ngozi Eze of the Ebonyi State Revenue Board, supported broader taxation but said policies should not discourage economic activity or investment.
“Fuel and telecommunications are no longer luxury items; they are necessities,” Eze said.
She added that both services support business, education, communication and daily livelihoods across the country.
A legal practitioner, Mr Emmanuel Ogbu, said the IMF recommendation was not binding on Nigeria.
“No tax can be imposed merely on the advice of an international institution,” Ogbu said.
He said any new tax policy must go through the proper legal process involving the National Assembly and should take into account the impact on ordinary Nigerians.
He warned that additional taxes on essential commodities could push more citizens deeper into poverty.
Mrs Grace Nwite, another lawyer, called for broad public consultation before any policy is implemented.
She said policies affecting millions of Nigerians must be transparent and socially responsible.
“Policies affecting millions must be inclusive and subjected to extensive national debate,” Nwite said.
Dr Samuel Nwali, an economist and lecturer at Ebonyi State University, Abakaliki, said taxing petroleum products after subsidy removal could trigger another round of price increases.
“Fuel is central to transportation, manufacturing and distribution,” Nwali said.
He warned that additional fuel taxes would likely raise the cost of goods and services.
Prof. Chinonso Ezeh, an economist, said telecom taxes could undermine digital inclusion.
“At a time when the economy is becoming digital, higher telecom costs may hurt users,” Ezeh said.
He noted that small businesses and students could face greater challenges from rising data costs.
Some traders also opposed the proposed measures, saying they could be passed on to consumers.
Mrs Esther Okoro, a foodstuff trader at Kpiri-Kpiri Market, said rising fuel costs were already affecting transportation.
“We are already struggling with transportation costs; more taxes will affect consumers,” Okoro said.
Mr Ifeanyi Nnachi, a phone accessories dealer, said telecom taxes could reduce profits.
“Many of us depend on affordable data to reach customers,” Nnachi said, adding that higher costs could affect online businesses and communication services.
The stakeholders urged the Federal Government to strengthen social protection programmes and tackle rising living costs before introducing new taxes.
NAN reports that the IMF recently advised Nigeria to broaden its tax base in order to improve domestic revenue mobilisation and reduce fiscal deficits.
The proposal has stirred debate amid high living costs and persistent inflation.
Critics say the taxes could deepen hardship and slow growth, while supporters argue they may improve revenue and strengthen fiscal sustainability.