Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, clarified the origins of Nigeria’s 5 percent fuel surcharge. In an interview on Channels Television’s “The Morning Brief,” Oyedele explained that the surcharge was introduced in 2007, long before the current administration took office. At the time of its introduction, the government was subsidising fuel prices, so the surcharge was not implemented.
The recent controversy stems from reports that the surcharge is set to take effect in January 2026. The proposal has sparked backlash from Nigerians who are concerned about its timing and potential impact. The 5 percent tax applies to every litre of fuel purchased and was not included in the original tax bills signed into law by President Bola Tinubu earlier this year. Oyedele noted that the decision to add the surcharge was made during the legislative process to streamline tax collection and eliminate redundant agencies.
The clarification comes amid growing criticism, with many fearing the surcharge could burden 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 reliance on subsidies. As the implementation date approaches, Nigerians will be watching closely to see how the policy unfolds. The government will need to balance its revenue goals with protecting 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 its impact on the economy and citizens.
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