Despite mounting criticism over worsening economic hardship, the Federal Government has justified its proposed five per cent fuel tax, insisting the levy will serve as a dedicated fund for road infrastructure and maintenance.
The chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, disclosed this on Saturday while circulating a set of frequently asked questions (FAQs) on the controversial policy.
According to the government, the surcharge, which will be activated at the discretion of the Minister of Finance, is a global best practice adopted in over 150 countries, where fuel levies range from 20 to 80 per cent.
“The surcharge is designed as a dedicated fund for road infrastructure and maintenance,” the government stated in response to concerns that the policy could worsen inflation and deepen the suffering of Nigerians.
It further argued that proper implementation of the tax would reduce travel time and cost, improve road safety, cut logistics expenses, and lower vehicle maintenance costs—benefits it said would ultimately boost the economy.
However, the announcement has triggered public backlash, with many Nigerians expressing anger over what they described as another burden on already overstretched citizens.
Former Anambra State governor and Labour Party chieftain, Peter Obi, faulted the policy, warning that millions of Nigerians struggling to afford transportation would now be compelled to pay more.
“Nigerians will pay a five per cent tax when buying their everyday fuel or diesel at a time when millions can hardly even afford the cost of transportation,” Obi said.
The fuel tax, reports suggest, could come into effect by January 2026 if approved by the Ministry of Finance.
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