“This Is Wickedness”: Nigerians Fire Back as FG Reveals Controversial Fuel Tax Plan

Keep up with the latest news and be part of our weekly giveaways and airtime sharing; follow our WhatsApp channel for more updates. Click to Follow us

The Federal Government’s plan to introduce a tax on fuel, recently disclosed by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has triggered widespread controversy across the country.

Many Nigerians have condemned the proposal, describing it as insensitive and cruel given the economic difficulties citizens are currently facing.

Despite the minister’s clarification that the tax would only take effect when the economy had stabilised and citizens’ incomes had improved enough to bear the additional burden, many Nigerians have dismissed his explanation. Some view the assurance as another attempt to mislead the public and subject citizens to further hardship.

Oyedele revealed the government’s plan during an interview on the sidelines of the 2026 annual meetings of the International Monetary Fund and the World Bank in Bangkok, Thailand. He explained that the proposed levy would be introduced once economic conditions improved and Nigerians could reasonably accommodate the additional expense.

According to him, the revenue generated from the tax would be channelled towards road infrastructure and the establishment of a fuel reserve designed to reduce the impact of future price shocks. He noted, however, that implementation would require an order from the finance minister published in the Official Gazette.

The disclosure comes amid previous opposition from organised labour and business associations to the five per cent surcharge on chargeable fossil fuel products contained in Nigeria’s tax framework. The levy cannot commence until the finance minister issues the required order.

Oyedele explained that introducing the tax when petrol subsidies were still in place would have defeated its purpose, as the government would effectively have borne the cost. He added that implementing it immediately after the removal of the subsidy would have imposed further financial pressure on Nigerians.

“The objective should be that instead of trying to suppress prices, which hasn’t worked for us or for any country in the world, not one, and instead of trying to suppress prices, we should think about how to grow income faster than prices rise.

“That’s how you bring prosperity and grow the middle class, and that is exactly what we are doing, as led by Mr President himself.

“At the appropriate time, when the economy is stabilised and income levels are able to accommodate it, those taxes will come. Not because we want to impose taxes,” Oyedele said.

The latest disclosure has revived public anger over the removal of the petrol subsidy, with Nigerians, particularly business owners who depend on generators for electricity, expressing frustration with the policies of the All Progressives Congress (APC)-led administration.

On how the proposed revenue would be utilised, Oyedele said the planned fuel reserve would “help moderate prices of fuel products if anything happens.”

He further stated that the government could suspend the tax temporarily during future price shocks to reduce the financial strain on consumers.

“The good thing is that the law says that tax cannot come into effect until there is a gazette. There has to be an order published in the gazette by the finance minister, which means we can’t do it in secret. Plus, we have no intention of doing stuff in secret.

“At the appropriate time, it will be clear to everyone why it needed to be done, and the benefits will be clear also to every Nigerian,” he said.

Under the existing surcharge framework, household kerosene, cooking gas, compressed natural gas, as well as clean and renewable energy products, are exempt from the levy.

On June 16, 2026, the Federal Government dismissed reports suggesting that it was planning to impose new taxes on petroleum products following recommendations contained in the International Monetary Fund’s Article IV consultation report. The government maintained at the time that the value-added tax waiver on petroleum products remained effective and that there was no ongoing process to activate the fuel surcharge.

Comparing Nigeria’s proposed approach with practices in other countries, Oyedele said taxes contribute between 20 and 80 per cent of pump prices in some jurisdictions. He also noted that several African countries impose between six and 10 separate charges on petroleum products.

The minister also discussed the order in which the government implemented the removal of petrol subsidies and foreign exchange reforms. He explained that the administration initially withdrew support for petrol prices before allowing the naira to adjust gradually.

According to him, fluctuations in the exchange rate had a significant effect on petrol prices, making it necessary for the government to manage the transition while taking the consequences for citizens into account.

“That is the reason why there was still a bit of subsidy in 2023. It was to manage that process because you need to be mindful of the impact on the people.”

Oyedele maintained that the petrol subsidy was fully removed in October 2023, when government support for both petrol prices and foreign exchange was no longer available.

However, the cost of fuel has continued to generate controversy since President Bola Tinubu announced that “fuel subsidy is gone” during his inauguration speech on May 29, 2023.

With the proposed tax generating fresh concerns, Nigerians have argued that the government should focus on measures to alleviate the economic consequences of subsidy removal instead of introducing another policy that could increase their financial burden.

A tailor, Niyi Osundare, said the proposed levy would worsen the difficulties of citizens already grappling with the removal of the subsidy, rising living expenses and the depreciation of the naira.

“Why is this government so wicked? How can anybody be thinking of putting a tax on fuel when we are complaining that a litre of fuel is selling for N1,400?

“Do you know that businesses are folding up because their owners can no longer cope with the situation?

“For instance, there is hardly any electricity for small businesses to operate, so most of us rely on generators. And then, you ask yourself, how much fuel at N1,400 per litre are you prepared to buy every day?

“We are running at a great loss, and that’s why most businesses are closing down. And somebody is talking about a fuel tax, which will automatically push up the price of fuel again.

“What is wrong with the APC government? What sort of thing is this? How can people decide that the only thing they will do to their citizens is inflict pain and more pain on them?

“This is wickedness, and Nigerians should rise up. This cannot be like the announcement that ‘subsidy is gone’, which was what brought us to where we are today.

“We are crying that we can’t afford the price of fuel as it is currently sold, and somebody is telling us that the government wants to introduce a fuel tax when the economy stabilises and people’s incomes improve. When will that be?

“Can this government ever do that? It is not possible. Since 2023, when this government came in, it has been one promise after another, and all of them have ended up bringing agony and sorrow to Nigerians.

“So, this time around, they can tell their story to the marine because we will not accept any fuel tax; it won’t happen,” he stated.

Reacting to the government’s promise that the proceeds would be invested in road infrastructure and used to cushion the effects of future price shocks, lawyer and public affairs analyst Kunle Onatade described the assurance as unconvincing.

He argued that the government had previously promised to channel the savings from petrol subsidy removal into infrastructure development, but Nigerians were yet to see the expected results.

Onatade further alleged that the current administration had borrowed more within three years than the government of former President Muhammadu Buhari borrowed during its eight years in office.

“Who is deceiving who? Where is all the money made from the fuel subsidy removal? Has this government, in three years, not borrowed more than Buhari in eight years? What are we talking about?

“This fuel tax move is just another avenue for making more money available for them to steal. They don’t care about the citizens as long as they keep amassing wealth for themselves.

“These are a bunch of heartless and corrupt politicians masquerading as political leaders; they don’t care about anybody. Nigerians should not listen to them. The fuel tax will bring about more hardship for Nigerians,” he said.

Business associations have also raised concerns about the possible consequences of the proposed tax on production costs, transportation expenses and the prices of goods and services.

The Association of Small Business Owners of Nigeria called on the government to prioritise economic relief for businesses and households, warning that an additional charge on fuel could further strain their finances.

Please don’t forget to “Allow the notification” so you will be the first to get our gist when we publish it. 
Drop your comment in the section below, and don’t forget to share the post.