Saturday, July 18, 2026

5% fuel tax good for Nigerians; will fund road infrastructure: Tinubu govt

The government further said the five per cent tax on fuel is a global best practice obtainable in other developed countries.

• September 6, 2025
Tinubu addressing an audience
President Bola Tinubu

President Bola Tinubu-led has highlighted the benefits of a five percent tax on fuel for Nigerians, insisting it would not be abolished despite prevailing economic hardship in the country.

In defence of the proposed tax, which would take effect when the finance minister deems it fit, Taiwo Oyedele, chairman of the Presidential Fiscal Policy and Tax Reforms Committee, circulated some frequently asked questions about the tax and the Tinubu-led government’s responses to the questions on Saturday.

Question four of the FAQs echoes the stance of some Nigerians who oppose the tax, citing the country’s current economic hardship. It reads: “Why not abolish the charge, given the current hardship and the risk of higher inflation?

In response, however, the Tinubu-led government said, “The surcharge is designed as a dedicated fund for road infrastructure and maintenance.”

It added, “If implemented effectively, it will provide safer travel conditions, reduce travel time and cost, and lower logistics costs and vehicle maintenance expenses, which will benefit the wider economy.”

The government further said the five per cent tax on fuel is a global best practice obtainable in other developed countries.

“This practice is virtually universal, with over 150 countries imposing various charges ranging between 20 per cent to 80 per cent of fuel products to guarantee regular investment in road infrastructure,” it said.

The FAQs come amid pushback against the five per cent tax on fuel. The report of its possible implementation by January 2026 has sparked reactions among Nigerians, many of whom condemned the Tinubu-led government for imposing more taxes on citizens amid economic hardships.

Peter Obi, former Anambra governor and Labour Party chieftain, faulted the new tax law, stating, “Nigerians will pay a five per cent tax when buying their everyday fuel or diesel at a time when millions can hardly even afford the cost of transportation.”

We have recently deactivated our website's comment provider in favour of other channels of distribution and commentary. We encourage you to join the conversation on our stories via our Facebook, Twitter and other social media pages.

More from Peoples Gazette

farmers

Agriculture

FG tasks ECOWAS on leveraging financing strategies for agroecology

The federal government has urged stakeholders in the agriculture and finance sectors in the West Africa region to leverage financing strategies to enhance agroecology practices

Katsina State

Politics

Katsina youths pledge to deliver over 2 million votes to Atiku

“Katsina State is Atiku’s political base because it is his second home.”

Emir Sanusi

NationWide

Nigeria’s energy crisis biggest obstacle to industrialisation: Sanusi

Mr Sanusi said addressing the country’s estimated 100 billion-dollar power infrastructure funding gap would require deep structural reforms.

Nigerian Independent System Operator

States

NISO announces planned outage on Jos-Bauchi-Gombe transmission line

The system operator commended electricity market participants and electricity consumers in the affected areas for their understanding and cooperation.

Tems

Showbiz

Tems emerges first African female artist to clinch Diamond single in US

Grammy-winning Nigerian singer,Temilade Openiyi, popularly known as Tems, has become the first African female artist to earn a Recording Industry Association of America (RIAA) Diamond-certified single

Bombed Russian warehouses

World

Seven die, over 40 injured as Ukraine bombs Russian warehouses in overnight reprisal 

Ukrainian President, Volodymyr Zelensky, in a post on X, said the attack was a response to Russia’s earlier attack on its civilian infrastructure.

A composite photo of Davido and Rihanna

Showbiz

I desire music collaboration with Rihanna, says Davido

The “I Know Who I Be” crooner however expressed uncertainty about the collaboration happening anytime soon.

FUHSO VC Prof. Francis Uba

Education

Benue varsity VC seeks improved security for institution, host communities

Mr Fulata advised the university management to ensure prudent and transparent utilisation of available resources.