Human rights lawyer Femi Falana has criticized the Nigerian government’s proposed 5% fuel surcharge, urging officials to reconsider their approach to economic hardship faced by citizens. During an appearance on Channels Television’s Sunday Politics programme, Falana emphasized that Nigerians should not be subjected to additional taxes.
Falana pointed out that the government owes approximately one trillion naira to the Federal Roads Maintenance Agency (FERMA) and should prioritize remitting these funds before imposing new charges. “It is the Federal Government that is owing, not the Nigerian people,” he stated.
The lawyer referenced the FERMA Act of 2007, which established a 5% user charge on fuel sales, allocating 40% for federal roads and 60% for state roads. However, he lamented that the government has failed to implement these provisions effectively. “Between 2007 and 2011, FERMA confirmed no funds were remitted despite deductions from fuel prices at source by regulators,” he revealed.
Falana recalled that in 2011, the government released ₦832 million following public pressure, but a significant backlog remained unpaid. By 2022, Senator Gershom Bassey, then Senate Committee Chair on FERMA, disclosed that the government owed about one trillion naira. Falana warned that introducing a new surcharge could lead to multiple taxation, further burdening already strained consumers.
“The money was deducted but not remitted. This new tax should first address those missing collections,” he argued. He called for transparency and accountability from the government regarding the earlier deductions before imposing any new levies.
In addition, Falana cautioned against the complete removal of fuel subsidies, describing it as economically unrealistic and socially insensitive. “No country abolishes all subsidies. Even the US and UK subsidize electricity, agriculture, and key social services,” he noted.
He criticized international lenders, urging Nigeria to resist the IMF and World Bank’s push for blanket subsidy removal. “You cannot devalue the naira, dollarise the economy, remove subsidies, and simultaneously raise politicians’ pay,” Falana warned, advocating for holistic government policies that protect vulnerable citizens from further economic shocks.
Meanwhile, Taiwo Oyedele, Chair of the Presidential Tax Committee, clarified that the 5% surcharge is rooted in the 2007 FERMA Act. Finance Minister Wale Edun confirmed that there are no immediate plans to implement the tax, despite its inclusion in the 2025 Tax Act, and stated that any such measures would require due process and stakeholder consultation.
However, labor unions remain skeptical, warning that the surcharge could be perceived as a direct pump tax and may lead to renewed strikes.
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