Home Governance Tinubu Govt Defends 5% Fuel Tax Despite Economic Hardship, Says It Will...

Tinubu Govt Defends 5% Fuel Tax Despite Economic Hardship, Says It Will ‘Benefit All Nigerians

The Bola Tinubu-led administration has insisted that the proposed five percent tax on fuel will not be abolished, despite mounting criticism over worsening economic hardship across the country.

According to the government, the fuel surcharge is designed as a dedicated fund for road infrastructure and maintenance, with the aim of improving safety, reducing travel time, and cutting logistics and vehicle maintenance costs.

The clarification was made by Taiwo Oyedele, chairman of the Presidential Fiscal Policy and Tax Reforms Committee, who released a set of frequently asked questions (FAQs) addressing concerns over the controversial tax policy.

In response to public outcry over inflation and hardship, the Tinubu-led government maintained that the surcharge reflects global best practices. “This practice is virtually universal, with over 150 countries imposing charges ranging from 20% to 80% of fuel products to guarantee regular investment in road infrastructure,” the statement noted.

However, pushback has been fierce. Former Anambra governor and Labour Party leader Peter Obi strongly faulted the policy, warning that Nigerians would be forced to pay more for essential fuel and diesel when millions can hardly afford transport costs.

The policy, expected to take effect by January 2026, has triggered heated nationwide debate, with critics accusing the government of imposing additional burdens on struggling citizens.

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