African Democratic Congress (ADC) chieftain, Chille Igbawua, has criticized the proposed 5% surcharge on fuel, citing the existing pressure on Nigerians following the removal of fuel subsidies. Igbawua expressed his concerns on Channels Television’s The Morning Brief, arguing that the government should scrap the proposed surcharge in light of the subsidy removal.
With the subsidy removal, the government has generated significant revenue, but Igbawua questions the management of these funds. He emphasized that countries implementing a pump tax typically do so to offset subsidy costs, making the proposed surcharge unnecessary in Nigeria’s case. Igbawua argued that citizens of an oil-producing economy should benefit from the removal of subsidies, rather than facing additional taxation.
The removal of fuel subsidies in May 2023, initiated by President Bola Tinubu, led to a significant increase in fuel prices, from less than ₦200 per liter to nearly ₦1,000 in some areas. Igbawua accused the Federal Government of mismanaging the funds generated from the subsidy removal. He suggested that improving the incomes of Nigerians would enable them to afford fuel, thereby reducing the economic burden.
The ADC chieftain proposed alternatives, such as pursuing Compressed Natural Gas (CNG) initiatives, which could provide relief to Nigerians. Despite opposition from various groups, the government has maintained its stance on not reinstating fuel subsidies. Igbawua’s comments highlight the ongoing debate surrounding the management of fuel subsidies and the proposed surcharge, emphasizing the need for effective revenue management and citizen-centric policies.
The proposed 5% surcharge on fuel has sparked concerns among Nigerians, who are already grappling with the economic implications of the subsidy removal. As the government navigates the complex issue of fuel pricing, it is essential to consider the welfare of citizens and ensure that revenue generated from the removal of subsidies is utilized effectively to benefit the economy and the people.
