Nigeria’s 5% Fuel Fee: What You Need to Know

News of a five percent fuel surcharge has sparked outrage across Nigeria. Many believe it’s a new tax introduced by the current administration, but according to Taiwo Oyedele, chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, the policy actually dates back nearly two decades.

                                 

Speaking on Channels Television’s The Morning Brief, Oyedele explained that:

• The 5% fuel fee was first introduced in 2007.

• It was not implemented at the time because fuel subsidies covered costs.

• The current administration under President Bola Tinubu did not propose the tax.

“One very important message for people to know is that this surcharge was not introduced by this government. It was introduced in 2007. And then it was not implemented because the government was subsidising fuel,” Oyedele stated.

Oyedele revealed that during the latest round of tax reforms, the surcharge was not part of the original proposal. Instead, it resurfaced during deliberations in the National Assembly.

• The surcharge is a 5% fee on every liter of fuel purchased.

• It is scheduled to take effect in January 2026.

• Lawmakers decided to consolidate tax collection under fewer agencies, which revived the clause.

“While we were doing this tax reform, it was not even in the original proposal, so it was not like the President proposed it to the National Assembly. But in the process of working on the bills, these issues came up, and then the decision was made that we should not have different agencies collecting taxes,” Oyedele said.

The announcement has triggered strong criticism across the country. Many Nigerians, already burdened by rising living costs, view the fee as an additional strain. Critics argue that its timing, just as subsidies have been removed, could make fuel even less affordable for ordinary citizens.