Fuel tax not new, to rehabilitate Nigerian roads – Oyedele

Following recent public outcry over a new tax, Tailo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, has clarified that fuel taxes for road rehabilitation are not new in Nigeria

Oyedele stated that a provision for a fuel surcharge existed in previous laws and has been carried over into the new tax legislation, the Nigeria Tax Administration Act.

Oyedele clarified that the tax is not new, adding that the surcharge was present in earlier laws, such as the Federal Environmental Management Act (FEMA), and the concept of fuel tax for infrastructure funding is not a recent development.

According to him, the revenue from the 5% surcharge on fossil fuels is specifically earmarked to provide transport infrastructure, which Oyedele believes will lower logistics costs and combat inflation.

Oyedele, who dismissed widespread negative reports on the surcharge, stated that the fuel tax will not automatically begin in January 2026.

The tax, which implementation is contingent on a formal commencement order from the Minister of Finance, aims to reduce logistics costs. The primary goal of the surcharge is to create a dedicated funding stream for road rehabilitation, which should ultimately reduce the costs associated with transporting goods and people.

There are also exemptions for clean energy as the tax will not apply to renewable energy sources, household kerosene, cooking gas (LPG), and Compressed Natural Gas (CNG).

Oyedele’s clarification followed public outrage over the newly signed Nigeria Tax Administration Act, which contains the 5% fuel surcharge.

Critics, including opposition politicians and civil society groups, voiced concerns that the tax would exacerbate economic hardship for ordinary Nigerians who are already struggling with the effects of subsidy removal and high inflation.

The Association of Nigerian Refineries Petroleum Marketers has also warned that the tax may further increase the pump price of fuel.

About The Author

Dele Fashomi

Dele Fashomi, seasoned journalist and communication teacher, is a holder of Master of Arts degree in Communication and Language Arts from the University of Ibadan in 1992/93.

Earlier, he had bagged a Bachelor degree from the same university in 1984, after which he proceeded to the Nigerian Institute of Journalism, Lagos, in 1990, for a postgraduate diploma in Journalism.

He had done many courses in communication, including the EU-BBC Editing Course in 2002.

Mr. Fashomi combines effectively the practice, research and teaching of communication. And to date, he has published two academic works in communication: Issues in Communication Technology and Policy (2010) and Economic and Social Issues in Advertising and PR (2013).

He had his first break in the Nigerian media in Concord Newspapers in 1990 and today, he has over two and half decades experience earned in several newspapers.

He has been part of many start-ups, such as The Republic (1987), The Comet (1999), The Anchor 2001 – 2002; Sun Newspapers (2003); Westerner newsmagazine (2005 – 2010) as Editor; National Life (2011) as Sunday Editor, and Newswatch Newspapers (2012- 2016) as Daily Editor.

Dele Fashomi is now the Publisher/Editor-in-Chief of Newstide247.com newspaper online, which he started in July 2015. He is also into biography writing, with many books in his trail, some of which he wrote alone and one he co- authored with his mentor, Mr Dare Babarinsa, entitled:  Olabiyi Durojaiye – DARE TO BE DiFFERENT. He also guided and collaborated with Pa Olatunji Odusanya in writing his autobiography – AGAINST ALL ODDS. There are many other books in the works under his pen.

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