The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has clarified that the proposed 5% fuel surcharge will not be implemented until Nigeria’s economic conditions improve, particularly a stronger naira and lower global crude oil prices.
Oyedele made the clarification on Thursday during the Haulage and Logistics Magazine Conference & Exhibition held in Lagos.
He explained that although the surcharge is designed to help fund road repairs and maintenance across the country, introducing it now would only deepen the financial burden on Nigerians and increase fuel prices.
According to him, the policy idea is widely used in more than 150 countries, but Nigeria’s current economic realities make its immediate implementation unfavorable.
“The idea is brilliant and already being implemented in more than 150 countries,” he said. “However, we cannot ignore the fact that most of our citizens are under severe economic pressure. Introducing a fuel surcharge now would be insensitive.”
Oyedele highlighted that Nigeria has about 200,000 kilometres of roads, many of which are in poor condition and require urgent maintenance. He said that the Federal Roads Maintenance Agency (FERMA) had proposed beginning the surcharge collection shortly after the removal of fuel subsidy, but the committee turned down the request.
“We said no — introducing such a tax now would be insensitive,” he emphasized.
He stated that the committee will only consider the surcharge when there are positive economic changes that would ensure it does not raise pump prices.
“For me, the right time will be when the naira strengthens or crude prices drop, so the surcharge won’t raise pump prices,” he added.
The clarification comes amid growing concerns about rising living costs, inflation, and declining purchasing power across the country.
