Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr. Taiwo Oyedele, has announced 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 explained that although the levy was designed to finance road infrastructure, introducing it now would impose an additional hardship on Nigerians already grappling with economic pressures.
He recalled that the surcharge was first introduced under former President Olusegun Obasanjo’s administration to dedicate a portion of fuel revenue to road maintenance with 40% allocated to federal roads and 60% to state and local government roads.
Describing the initiative as a “brilliant idea” already adopted by more than 150 countries, Oyedele stressed that Nigeria’s road network spanning about 200,000 kilometres remains largely in poor condition, making dedicated road funding essential.
He disclosed that the Federal Roads Maintenance Agency (FERMA) had earlier sought approval to begin collecting the levy following the removal of fuel subsidy, but the committee rejected the request.
“We said no introducing such a tax now would be insensitive,” Oyedele stated.
He added that while the surcharge has been included in the draft tax law, it comes with built-in safeguards, one of which requires the Minister of Finance to issue an official order before implementation can begin.
“For me, the right time will be when the naira strengthens or when crude oil prices fall, so the surcharge won’t push pump prices higher,” he explained.
Oyedele also assured stakeholders that the committee’s broader tax reform efforts are focused on reducing burdens within the haulage and logistics sector by eliminating multiple and overlapping taxes, cutting operational costs, and enhancing overall efficiency.
“We are not adding new taxes; we are removing several duplicated ones that frustrate transporters and drive up costs,” he said.
In addition, Oyedele noted that the reforms aim to support smaller businesses by exempting transport and logistics companies earning below ₦100 million annually from company income tax. Such companies will also be eligible for VAT refunds and other tax incentives to promote growth and long-term sustainability in the sector.
