Taiwo Oyedele, head of Nigeria’s Presidential Committee on Fiscal Policy and Tax Reforms, has said that the 5% fuel surcharge was not introduced by President Bola Tinubu’s government. The levy has actually been in place since 2007.
He explained on Channels Television that the law was not enforced earlier because the government was still subsidising fuel, which made the surcharge unnecessary.
Oyedele also said that the surcharge was not part of the original tax reform proposals this year. It only came up later during discussions about making tax collections more efficient across different government agencies.
The Federal Road Maintenance Agency (FERMA) is responsible for collecting the surcharge. According to the law, 40% of the revenue goes to federal roads, while 60% goes to state governments.
He added that there is currently no plan to start the surcharge in January, despite recent reports suggesting otherwise. The news had caused concern among Nigerians, especially given the rising cost of living.
Civil society groups, trade unions, and business organisations have opposed the measure. The Trade Union Congress (TUC) even warned that it might go on strike if the surcharge is enforced.
Oyedele said the surcharge is necessary for keeping Nigeria’s roads in good condition. He emphasised that the revenue from the levy will ultimately benefit the public.
