October 31, 2025
Until there is a significant improvement in key economic indicators, particularly an appreciation of the naira or a fall in global crude oil prices, the proposed 5% fuel surcharge (tax) will not be implemented.
Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr. Taiwo Oyedele, disclosed this on Thursday in Lagos while speaking at the Haulage and Logistics Magazine Conference & Exhibition.
Oyedele noted that while the surcharge is a sound policy designed to fund road maintenance, introducing it now would worsen the financial strain on Nigerians.
He explained that the surcharge which was first introduced under the ex-president Olusegun Obasanjo administration, was intended to dedicate part of fuel revenues to road repairs — 40% for federal roads and 60% for states and local governments roads.
READ MORE; President Tinubu Approves 15% Fuel, Diesel Import Tariff
“The idea is brilliant and already being implemented in more than 150 countries,” Oyedele said, adding that most of Nigeria’s 200,000 kilometres of roads are in poor condition.
He clarified that the committee rejected the request by the Federal Roads Maintenance Agency (FERMA) to start collecting the levy immediately after fuel subsidy removal.
“We said no as introducing such a tax now would be insensitive,” he stated.
Although the committee included the surcharge in the draft tax law, he said it was with safeguards requiring the Minister of Finance to issue an official order before it takes effect.
“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.
READ MORE; Peter Obi Lambast FG over new Fuel Hike.
Oyedele assured that the ongoing tax reforms would deliver significant relief to the haulage and logistics sector by eliminating multiple taxation, reducing 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.
He explained that under the new policy, small transport and logistics businesses with annual turnover below N100 million will be exempt from company income tax, while eligible operators will benefit from VAT refunds and tax incentives.
Oyedele affirmed that the new tax reforms will simplify Nigeria’s complex tax system and ensure transparency and efficiency in the sharing amongst all levels of government.
