Oye warns additional levies will worsen hardship for over 140 million poor Nigerians as tax revenue rises sharply

The Chairman of the Alliance for Economic Research and Ethics, Dele Oye, has openly rejected the International Monetary Fund’s (IMF) recent call for the Nigerian government to introduce new taxes on petroleum products and telecommunications services. Oye made this known in a statement issued in Abuja on Sunday, stressing that such measures would further cripple businesses and increase suffering among the country’s poorest citizens.

Oye argued that imposing extra taxes at a time when an estimated 140 million Nigerians live below the poverty line would only add to their burden. According to him, inflation, high cost of living, and weak purchasing power are already major issues facing households and businesses across the country. He pointed out that Nigeria has managed to grow its revenue base without resorting to fresh taxes on essential goods and services. “Tax collections rose by more than 180 per cent in three years, from ₦10.1 trillion in 2022 to ₦28.3 trillion in 2025,” Oye stated.

He further noted that Nigerian businesses are already contending with what he described as “hidden taxes”. These include high borrowing costs due to prevailing interest rates, unreliable electricity supply leading to increased production costs, multiple levies imposed by federal, state and local governments, volatility in foreign exchange markets, and security-related expenses that companies are forced to bear.

According to Oye, introducing additional taxes on fuel and telecoms would be counterproductive at this point, as it would stifle economic activities and reduce competitiveness for local enterprises. He called on policymakers to focus instead on broadening the tax net and improving efficiency in revenue collection rather than raising rates or introducing new levies.

The IMF had earlier recommended these new tax measures as part of efforts to boost Nigeria’s fiscal position amid rising debt levels and persistent budget deficits. However, stakeholders like Oye argue that such policies should consider the prevailing hardship faced by millions of Nigerians. There was no immediate response from government officials regarding Oye’s statement.

Source: https://guardian.ng/business-services/oye-condemns-imfs-call-for-additional-taxes/