The Nigerian government has clarified the introduction of a 5% surcharge on fuel, stating that it was not introduced by the current administration. According to Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, the law was enacted in 2007, but its implementation was delayed due to fuel subsidies.

Oyedele explained that the surcharge was not part of the tax bills signed into law by President Bola Tinubu earlier this year. He noted that during the tax reform process, the decision was made to consolidate tax collection and eliminate multiple agencies collecting taxes. The Federal Road Maintenance Agency (FERMA) is mandated to collect the surcharge, with 40% allocated to the Federal Government for road maintenance and 60% to the states.

Despite reports suggesting the surcharge would be implemented in January, Oyedele stated that there is no indication of this. The clarification comes amid backlash from Nigerians, civil society organizations, and trade unions, who have criticized the timing of the surcharge. The Trade Union Congress (TUC) has threatened to strike over the development, while the Organised Private Sector has rejected it.

Oyedele argued that the surcharge will help maintain the country’s road infrastructure, ultimately benefiting Nigerians. The controversy surrounding the surcharge highlights the need for clear communication and transparency in government policy decisions. As the situation unfolds, it remains to be seen how the government will address the concerns of various stakeholders and balance the need for infrastructure development with the potential impact on citizens.

The introduction of the surcharge has sparked debate about the government’s fiscal policies and the impact on the economy. With Nigeria’s economy still recovering from the effects of the pandemic and other global challenges, the government’s decisions on taxation and infrastructure development will be closely watched. As the government moves forward with its plans, it will be essential to consider the perspectives of all stakeholders and ensure that policies are implemented in a way that benefits the country as a whole.