Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr. Taiwo Oyedele, has said the proposed 5% fuel surcharge will not take effect until there is a notable improvement in key economic indicators, particularly a stronger naira or a decline in global crude oil prices.
Speaking at the Haulage and Logistics Magazine Conference and Exhibition in Lagos on Thursday, Oyedele explained that although the policy aims to fund road maintenance, implementing it now would worsen the financial burden on Nigerians.
He noted that the surcharge, first introduced under former President Olusegun Obasanjo’s administration, was designed to dedicate part of fuel revenues to road repairs — 40 percent for federal roads and 60 percent for state and local government roads.
“The idea is brilliant and already being implemented in more than 150 countries,” Oyedele said, stressing that most of Nigeria’s 200,000 kilometres of roads are in poor condition.
He disclosed that the Federal Roads Maintenance Agency (FERMA) had requested to begin collecting the levy after the removal of fuel subsidy, but the committee turned down the request. “We said no – introducing such a tax now would be insensitive,” he stated.
According to Oyedele, the committee included the surcharge in the draft tax law but inserted safeguards requiring the Minister of Finance to issue an official order before it can be enforced. “For me, the right time will be when the naira strengthens or crude prices drop, so the surcharge won’t raise pump prices,” he added.
Oyedele also assured stakeholders that ongoing tax reforms would provide relief to the haulage and logistics sector 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.
