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Posted By Admin On September 19th, 2025

Recently, the Federal Government announced that Nigerians would start paying five percent tax on every 10 litres of fuel purchased.

Although the take-off date of the policy is uncertain, it did not go down well with Nigerians.

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, who made the announcement in Abuja last week, clarified that the five percent surcharge was not a new levy, but rather a provision first introduced in 2007 under the Federal Road Maintenance Agency Act.

According to him, the law, which has been in existence since 2007, is for harmonisation and transparency.

“The inclusion of the surcharge in the 2025 Nigeria Tax Administration Act does not mean an automatic introduction of a new tax. It doesn’t mean fresh taxation automatically.

“The five percent surcharge has existed since 2007. Its inclusion in the new law is merely for harmonisation and transparency.

“There is no immediate plan to implement any surcharge, and as of today, no commencement order has been issued or is being prepared,” he said.

Expectedly, the proposed tax has been generating reactions among Nigerians, many of whom have expressed anger over the development.

Although the finance minister has assured that no commencement order has been given, probably because of the barrage of attacks trailing the move, Nigerians are still not taking the assurance seriously.

Those pushing this narrative would quickly cite the issue of fuel subsidy removal, which instantly moved the pump price of petrol from N167 per litre to the current price of between N865 and N1000 per litre depending on the part of Nigeria one is buying the product from.

This development, they argued, changed everything in Nigeria for the worse as things kept getting harder and harder by the day without any response from the government to address the people’s economic woes and pains.

However, social media has been abuzz with the issue as netizens continue to debate about the pros and cons of what appears to be one of the government’s most controversial announcements in recent times.

Some Lagos residents, who shared their thoughts on the proposed tax were of the opinion that the move is a very wrong one and must be rescinded.

Mr Taiwo Oladosun, a real estate agent, speaking on the matter, said: “The issue of taxing individuals five percent for purchasing fuel is wrong. Not everybody can afford that, considering the current situation we found ourselves in, so including such a new tax to the already existing burden would be a real struggle.”

Johnson Olagunji believes that fuel stations should be monitored to ensure transparency. “If they are going to be introducing this new law on buyers, then the government should make sure that those selling the product must ensure the pumps are fixed accurately.

“One litre should be one litre, so that the charges of the percentage will not affect the buyers so much

“Many times when we buy fuel, it turns out that the quantity of litres we intend to purchase is less than what is actually sold to us eventually.

“The government should, therefore, set up a motoring and enforcement committee or team to ensure that every fuel station is monitored to ensure transparency.”

A businessman who commutes on a daily basis, Mr Gabriel Adigun also has this to say, “I transport daily, and I can only imagine the cost of transportation once this law is implemented.

“The tax will affect people like us massively, especially those of us who have budgets and families to run.”

However, an Okada rider, Ozo Darlington, said: “Does the government think we are like them that pluck money from the tree?

“The normal payment of fuel is enough to drain our pockets; must they still go ahead to make things difficult for us? With time, we might even be asked to pay tax for the air we breathe.”

Also contributing to the conversation, a fuel attendant, Kikelomo Oluwatosin said: “I don’t really know how they plan to go about this because our own goal is to follow the government’s directives and instructions. The people are already complaining about the prices, and I am sure implementing it would attract more complaints. But, there is nothing one can do since we, the masses, have no choice.”

Another fuel attendant, Kingsley Ibe, said: “At the end of it all, what we want is a country that has better living conditions. If there would be tax for everything, let us at least see where the money is going.

“The issue is that this government keeps taxing Nigerians but we don’t see any positive development. It is quite unfortunate that a few Nigerians are feeding fat on the sweat of the majority. These tax monies all go into private pockets.”

However, groups like the Nigeria Labour Congress, NLC, the Trade Union Congress, TUC, manufacturers association and even politicians, including Peter Obi, the presidential candidate of the Labour Party, LP, in the 2023 presidential election, have all condemned the proposed five percent fuel tax.

Obi, writing on his social media handle, X, asked to know when Nigerians would actually breathe.

He lamented that another burden is being placed on Nigerians at a time when many Nigerians can hardly afford their daily transportation cost.

He said: “That is, Nigerians will pay a five percent tax when buying their everyday fuel or diesel at a time when millions can hardly even afford the cost of transportation.

“Mr. President just yesterday boasted that Nigeria has met its revenue target for the year. Yet, instead of easing hardship, the government imposes more burden on Nigerians.

“Even the so-called alternative CNG has become unaffordable, rising from about N230 to N450, while the promised subsidies on the CNG have quietly vanished.

“If our revenues are truly excessive as claimed, should they not first be used to fund education, healthcare and pull Nigerians out of poverty? Why tax citizens who cannot even breathe anymore?”

He advised the government not to add to the economic burden that the citizens are already battling with but to seek ways and means of making life easier and more meaningful for Nigerians.

He told the government to wait until there are marked improvements in the lives of citizens.

“This five percent fuel tax should wait until Nigerians begin to see tangible improvements in their lives from all the many promises from Mr. President.

“Leadership is not about giving a burden, it is about reducing suffering; it is about care and compassion,” he stated.

Source: https://dailypost.ng/2025/09/19/nigerian-governments-proposed-5-fuel-tax-angers-citizens/