Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, has clarified the origins of the 5 percent surcharge on fuel in Nigeria. According to Oyedele, the surcharge was introduced in 2007, long before the current administration took office. He made this disclosure during an interview on Channels Television’s ‘The Morning Brief’ programme.
Oyedele explained that the surcharge was not implemented at the time of its introduction because the government was subsidizing fuel prices. The recent controversy surrounding the surcharge stems from reports that it is set to come into effect in January 2026. The proposal has sparked backlash from Nigerians who are concerned about the timing and potential impact of the tax.
The surcharge, which imposes a 5 percent tax on every liter of fuel purchased, was not part of the original tax bills signed into law by President Bola Tinubu earlier this year. Oyedele noted that the decision to include the surcharge was made during the legislative process, with the aim of streamlining tax collection and eliminating redundant agencies.
The clarification comes amidst growing criticism of the surcharge, with many expressing concerns about the potential burden it could place on consumers. The Nigerian government has been working to reform its tax policies, and the surcharge is seen as part of a broader effort to increase revenue and reduce the country’s reliance on subsidies.
As the implementation date for the surcharge approaches, Nigerians will be watching closely to see how the policy unfolds. The government will need to balance its revenue goals with the need to protect consumers from undue hardship. With the surcharge set to take effect in just a few months, the coming weeks will be crucial in shaping the country’s tax landscape and determining the impact on the economy and citizens.
