5% fuel tax won’t start until naira gains — Oyedele

5% fuel tax won’t start until naira gains — Oyedele

Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr. Taiwo Oyedele, has stated that the proposed 5% fuel surcharge will not be implemented until Nigeria’s economy shows clear signs of recovery — particularly when the naira appreciates or global crude oil prices decline.

Speaking at the Haulage and Logistics Magazine Conference and Exhibition held in Lagos on Thursday, Oyedele explained that while the levy is designed to generate funds for road maintenance, introducing it now would place undue hardship on Nigerians.

“We said no — introducing such a tax now would be insensitive,” Oyedele said, revealing that the Federal Roads Maintenance Agency (FERMA) had requested approval to begin collection of the surcharge following the removal of fuel subsidy.

He recalled that the fuel surcharge was first introduced during the administration of former President Olusegun Obasanjo, with revenues allocated 40% to federal roads and 60% to state and local government roads.

“The idea is brilliant and already being implemented in more than 150 countries,” he noted, adding that most of Nigeria’s 200,000 kilometres of roads remain in poor condition.

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Oyedele clarified that although the surcharge has been included in the draft tax law, it will only take effect upon an official directive from the Minister of Finance.

“For me, the right time will be when the naira strengthens or crude prices drop, so the surcharge won’t raise pump prices,” he said.

Relief for Haulage Sector

Oyedele also assured stakeholders that the ongoing tax reforms will bring relief to the haulage and logistics industry by eliminating multiple taxation, reducing operational costs, and improving efficiency.

“We are not introducing new taxes; we are removing the many duplicated ones that frustrate transporters and increase prices,” he said.

Under the new policy, small transport and logistics firms with an annual turnover below ₦100 million will be exempt from company income tax, while qualifying operators will benefit from VAT refunds and other tax incentives.

He emphasized that the reforms are aimed at simplifying Nigeria’s tax system, enhancing transparency in revenue collection, and ensuring equitable distribution across all tiers of government.

5% fuel tax won’t start until naira gains — Oyedele