5% Fuel Tax Good For Nigerians, Will Fund Road Infrastructure – Tinubu Govt

President Bola Tinubu-led has highlighted the benefits of a five percent tax on fuel for Nigerians, insisting it would not be abolished despite prevailing economic hardship in the country.

In defence of the proposed tax, which would take effect when the finance minister deems it fit, Taiwo Oyedele, chairman of the Presidential Fiscal Policy and Tax Reforms Committee, circulated some frequently asked questions about the tax and the Tinubu-led government’s responses to the questions on Saturday.

Question four of the FAQs echoes the stance of some Nigerians who oppose the tax, citing the country’s current economic hardship. It reads: “Why not abolish the charge, given the current hardship and the risk of higher inflation?

In response, however, the Tinubu-led government said, “The surcharge is designed as a dedicated fund for road infrastructure and maintenance.”

It added, “If implemented effectively, it will provide safer travel conditions, reduce travel time and cost, and lower logistics costs and vehicle maintenance expenses, which will benefit the wider economy.”

The government further said the five per cent tax on fuel is a global best practice obtainable in other developed countries.

“This practice is virtually universal, with over 150 countries imposing various charges ranging between 20 per cent to 80 per cent of fuel products to guarantee regular investment in road infrastructure,” it said.

The FAQs come amid pushback against the five per cent tax on fuel. The report of its possible implementation by January 2026 has sparked reactions among Nigerians, many of whom condemned the Tinubu-led government for imposing more taxes on citizens amid economic hardships.

Peter Obi, former Anambra governor and Labour Party chieftain, faulted the new tax law, stating, “Nigerians will pay a five per cent tax when buying their everyday fuel or diesel at a time when millions can hardly even afford the cost of transportation.”