Mr. Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, has said Nigeria’s proposed 5% fuel surcharge will not take effect until key economic indicators improve, particularly a stronger naira or a drop in global crude oil prices.
Speaking at the Haulage and Logistics Magazine Conference & Exhibition in Lagos, Oyedele said the surcharge, designed to fund road maintenance, would worsen financial pressure on Nigerians if introduced now.
“We said no – introducing such a tax now would be insensitive,” he added.
The levy, first introduced under the Olusegun Obasanjo administration, is intended to dedicate fuel revenues to road repairs — 40% for federal roads and 60% for state and local roads.
“The idea is brilliant and already being implemented in more than 150 countries,” Oyedele noted, adding that most of Nigeria’s 200,000 kilometres of roads are in poor condition.
Although the Federal Roads Maintenance Agency (FERMA) requested to start collecting the levy after fuel subsidy removal, the committee rejected the move.
The draft tax law includes the surcharge but requires an official order from the Minister of Finance before it takes effect.
“For me, the right time will be when the naira strengthens or crude prices drop, so the surcharge won’t raise pump prices,” Oyedele said.
He also assured that ongoing tax reforms would relieve the haulage and logistics sector by eliminating multiple taxation, reducing costs, and improving efficiency.
“We are not introducing new taxes; we are removing the many duplicated ones that frustrate transporters and increase prices,” he explained.
Under the new policy, small transport and logistics businesses with annual turnover below ₦100 million will be exempt from company income tax, while eligible operators will benefit from VAT refunds and other tax incentives.
Oyedele said the reforms will simplify Nigeria’s complex tax system and ensure transparent, efficient revenue sharing across all levels of government.
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