Nigeria Not Considering Fuel Tax – Finance Ministry

Nigerians Will Benefit From Fuel Price War – NNPCL.Credit: The Nation Nigerians Will Benefit From Fuel Price War – NNPCL.Credit: The Nation
Nigerians Will Benefit From Fuel Price War – NNPCL.Credit: The Nation

Nigeria’s Ministry of Finance has announced on Tuesday that the government is not considering a fuel tax, seeking to clarify remarks by Finance Minister Taiwo Oyedele.

“Having removed the fuel subsidy, it would be insensitive for government to impose a fuel tax at this time,” the ministry quoted Oyedele as saying in an interview with ARISE News.

The ministry said his remarks were clear and unequivocal, contrary to misleading online reports suggesting a tax is planned, and urged the public to disregard such headlines.

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The clarification followed an interview in which Oyedele said fuel taxes would be introduced “at the appropriate time, when the economy has stabilised, and income level will be able to accommodate it.”

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Taiwo Oyedele. Credit: Guardian.

He said the government’s immediate priority was to complete ongoing reforms, stabilise the economy and restore growth before introducing the taxes, arguing that imposing them immediately after the removal of petrol subsidies would place additional pressure on Nigerians.

“You remove subsidy, you can’t immediately impose taxes. That would be insensitive. You push the people to the wall,” he said.

Oyedele noted that fuel taxes are common elsewhere, with many African nations imposing multiple taxes on petroleum products.

“Now, if you look across the world, between 20 to 80% of price is taxes. Many of the countries in Africa have between six to 10 different taxes on fuel products,” he said.

He said Nigeria must first stabilise the economy and improve household incomes, focusing on growing incomes faster than prices rise rather than suppressing prices, which he said has not worked.

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  • Jimisayo Opanuga

    Jimisayo Opanuga is a web writer in the Digital Department at News Central TV, where she covers African and international stories. Her reporting focuses on social issues, health, justice, and the environment, alongside general-interest news. She is passionate about telling stories that inform the public and give voice to underreported communities.

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