Proposed fuel tax in Nigeria
The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has clarified that the proposed fuel tax will not take effect until Nigeria’s economy becomes stable, particularly when the Naira appreciates or global oil prices drop. He explained that the government is cautious about introducing any tax that could further burden citizens amid current economic challenges.
Oyedele, who spoke during an interview on Thursday, stated that the committee’s recommendation for a fuel tax was designed to ensure long-term fiscal sustainability but not to worsen the existing hardship. According to him, the plan will only be implemented when economic indicators show positive signs such as reduced inflation, improved exchange rates, and manageable energy prices.
He added that the government’s primary focus remains on stabilising the economy and supporting businesses, not imposing new levies. Oyedele emphasised that Nigeria’s current fiscal structure must encourage productivity and investment before any fuel-related tax can be considered.
The proposed tax, which has sparked mixed reactions among economists and citizens, aims to create a stable revenue base for national development. However, Oyedele assured that the administration is mindful of its timing and the potential impact on transport costs and living standards.
