Oyedele Breaks Silence: Why Tinubu’s Fuel Tax Won’t Take Effect Yet

Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has clarified that the proposed 5 per cent fuel surcharge approved by President Bola Tinubu will not be implemented immediately.

Speaking on Thursday at the Haulage and Logistics Magazine Conference & Exhibition in Lagos, Oyedele said the levy would only come into effect when key economic indicators — including the naira’s exchange rate and global oil prices — show significant improvement.

According to him, although the policy was designed to generate funds for road maintenance, introducing it at this time would worsen the financial pressure already facing Nigerians.

“We said no — introducing such a tax now would be insensitive,” Oyedele stated.

He explained that the fuel surcharge concept originated under former President Olusegun Obasanjo, with revenue split between federal (40%) and state and local governments (60%) for road repairs.

“The idea is sound and already practiced in over 150 countries,” he said, lamenting that Nigeria’s 200,000-kilometre road network remains largely in poor condition due to underfunding.

Oyedele revealed that although the Federal Roads Maintenance Agency (FERMA) had sought permission to begin collecting the levy after the removal of fuel subsidies, the committee turned down the request.

He noted that while the surcharge is captured in the draft tax law, it will only take effect upon an official directive from the Minister of Finance.

“For me, the right time will be when the naira gains strength or when global oil prices drop — that way, the surcharge won’t push up fuel pump prices,” he added.

Relief Measures for Transporters and Logistics Operators

Oyedele assured stakeholders that the ongoing fiscal reforms will soon bring tangible relief to transport and logistics operators by tackling multiple taxation, reducing operating costs, and enhancing efficiency.

“We are not introducing new taxes,” he stressed. “Instead, we are removing numerous overlapping ones that burden transporters and inflate prices.”

Under the new tax framework, transport and logistics firms with annual turnovers below ₦100 million will be exempted from company income tax, while eligible operators will enjoy VAT refunds and other incentives.

He further emphasized that the reforms aim to simplify Nigeria’s complex tax regime and promote transparency in revenue collection and distribution.

“The ultimate goal,” he concluded, “is to make the tax system fair, efficient, and transparent — ensuring that all collections are properly accounted for and equitably shared across all levels of government.”