The Nigerian Federal Government has announced a new directive that would require citizens to pay five percent tax on every 10 litres of fuel purchased. While the official commencement date of this policy remains unclear, the pronouncement has ignited widespread anger and debate across the country.

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, revealed this policy in Abuja last week. He explained that the 5% surcharge is not a new levy, but rather a provision originally introduced under the Federal Road Maintenance Agency (FERMA) Act of 2007.

According to Edun, its inclusion in the 2025 Nigeria Tax Administration Act is simply for “harmonisation and transparency.” He stressed:

“This does not imply the introduction of a new tax. The five percent surcharge has existed since 2007. Its integration into the new law is merely for clarity. No immediate implementation order has been issued or is in preparation at the moment.”

Despite this clarification, Nigerians remain unconvinced. Many citizens recall similar assurances made during the fuel subsidy removal, which skyrocketed petrol prices from ₦167 per litre to between ₦865 and ₦1,000 per litre, depending on location. For most Nigerians, this new tax proposal seems like another attempt to pile more hardship on the masses.

---

Nigerians React With Outrage

The announcement has dominated discussions across social media platforms, with citizens openly criticizing the plan.

• Taiwo Oladosun, a real estate agent, condemned the move, describing it as “unjust and insensitive.” He argued that Nigerians are already struggling with the economic downturn, and the additional burden of a fuel tax would be unbearable.
• Johnson Olagunji, another respondent, stressed the importance of accountability at filling stations. He said: “If the government is insisting on this surcharge, they must ensure that one litre equals one litre. Many times, fuel sold at stations is below the actual quantity paid for. A monitoring and enforcement team should be in place to guarantee transparency.”
• Gabriel Adigun, a businessman who commutes daily, feared that transportation costs would spiral out of control once the law takes effect.
• Ozo Darlington, an Okada rider, spoke with sarcasm: “The government behaves like money grows on trees. The price of fuel already empties our pockets. Must they now tax us for breathing?”

Fuel attendants also weighed in.

• Kikelomo Oluwatosin admitted uncertainty about how the policy would be implemented but noted that public complaints would only increase.
• Kingsley Ibe criticized the government’s endless taxation without visible improvements: “Taxes keep rising, yet Nigerians see no meaningful development. Instead, the funds end up in private pockets.”

---

Labour Unions, Politicians, and Groups Condemn the Move

Organisations such as the Nigeria Labour Congress (NLC), the Trade Union Congress (TUC), and the Manufacturers Association of Nigeria (MAN) have strongly opposed the policy.

Notably, Peter Obi, the Labour Party presidential candidate in the 2023 elections, took to his social media page to voice his concern. He lamented:

“This means Nigerians will now pay a five percent tax on fuel at a time when millions cannot even afford transport. The government claimed it has already met its revenue target. Why then impose additional burdens on suffering citizens?”

He further criticised the government for failing to deliver on its promise of affordable Compressed Natural Gas (CNG), which has increased from ₦230 to ₦450. According to him, subsidies on CNG quietly disappeared, leaving Nigerians stranded.

Peter Obi emphasized that true leadership is about easing suffering, not compounding it. He urged the government to suspend the policy until Nigerians begin to experience real improvements in their quality of life.

---

Conclusion

The proposed 5% fuel tax has become one of the most controversial government pronouncements in recent times. Nigerians, already burdened by high living costs, view this policy as another blow to their fragile economy. With strong opposition from citizens, labour groups, and political leaders, the government may be forced to reconsider or suspend the policy.

What remains clear is that trust between the people and the government continues to erode, especially when economic reforms are introduced without adequate consultation or visible benefits to the masses.