Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has clarified that the proposed 5% fuel surcharge will not be implemented until Nigeria’s economic conditions improve, particularly a stronger naira or a decline in global crude oil prices.
Speaking at the Haulage and Logistics Magazine Conference & Exhibition in Lagos, Oyedele said that while the surcharge is a sound idea meant to fund road maintenance, introducing it now would deepen the financial hardship already faced by citizens.
He explained that the policy, first introduced under former President Olusegun Obasanjo, was designed to dedicate a portion of fuel revenue to road repairs—40% for federal roads and 60% for state and local government roads.
“The idea is brilliant and already being implemented in more than 150 countries,” Oyedele said, noting that most of Nigeria’s 200,000 kilometres of roads remain in poor condition.
He revealed that the Federal Roads Maintenance Agency (FERMA) had requested permission to begin collecting the levy after fuel subsidy removal but said the committee rejected the proposal.
“We said no – introducing such a tax now would be insensitive,” he stressed.
Oyedele added that although the surcharge is included in the draft tax law, it cannot take effect without an official order 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.
He further assured that the committee’s ongoing tax reforms would provide relief for the haulage and logistics industry by eliminating multiple levies, reducing operating costs, and enhancing efficiency.
“We are not introducing new taxes; we are removing the many duplicated ones that frustrate transporters and increase prices,” Oyedele noted.
Under the new policy, small transport and logistics firms with annual turnover below N100 million will be exempt from company income tax, while eligible operators will receive VAT refunds and enjoy new tax incentives.
He emphasized that the reforms aim to simplify Nigeria’s tax system and ensure transparency, fairness, and efficient revenue distribution across all tiers of government.
