The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr. Taiwo Oyedele, has clarified that the proposed 5% fuel surcharge will not be implemented until there is a significant 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 & Exhibition in Lagos, Oyedele said the surcharge is a well-intentioned policy aimed at funding road maintenance but introducing it now would worsen the financial burden on Nigerians.
He explained that the surcharge, first introduced under former President Olusegun Obasanjo, was designed to channel part of fuel revenues into 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 although the Federal Roads Maintenance Agency (FERMA) had requested to begin collecting the levy after fuel subsidy removal, the committee rejected the proposal.
“We said no. Introducing such a tax now would be insensitive,” he stated.
Oyedele added that while the committee included the surcharge in the draft tax law, it inserted safeguards requiring the Minister of Finance to issue an official order before it can take 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 explained.
He also assured that the ongoing tax reforms will bring relief to the haulage and logistics sector by eliminating multiple taxes, reducing costs, and improving efficiency.
“We are not introducing new taxes; we are removing the many duplicated ones that frustrate transporters and increase prices,” Oyedele said.
According to him, under the new policy, small transport and logistics businesses with an annual turnover below ₦100 million will be exempted from company income tax, while eligible operators will enjoy VAT refunds and tax incentives.
Oyedele emphasized that the reforms aim to simplify Nigeria’s complex tax system, ensure transparency in collections, and guarantee fair distribution of revenues across all levels of government.
