The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has explained that the proposed 5% fuel surcharge is designed to raise a dedicated fund for fixing Nigeria’s bad roads, not to burden citizens.
Speaking on Channels Television’s Morning Brief on Tuesday, Oyedele admitted concerns about inflation but stressed that poor road infrastructure is a major driver of high transport and food costs in the country.The surcharge is part of the Nigeria Tax Act, 2025, and is scheduled to take effect in January 2026. However, it has stirred public anxiety, with the Trade Union Congress threatening a nationwide strike if it is not scrapped.
Oyedele noted that Nigeria has about 200,000 kilometres of roads, of which only about 60,000 are in good condition. He linked this to the high cost of moving goods, unsafe transport, and the wide gap between rural and urban food prices.He clarified that the fuel surcharge was originally introduced in 2007 but was not implemented because of subsidies. With subsidy removal creating more fiscal space, he argued that the new revenue stream is necessary to bridge Nigeria’s huge infrastructure gap.
Oyedele assured that the surcharge would be implemented carefully, possibly timed with gains in the naira or a fall in crude oil prices to cushion its effect on pump prices. He also said the funds would be ring-fenced and dedicated solely to road projects, pointing to the success of the Road Infrastructure Tax Credit Scheme where private companies like Dangote, NLNG, Lafarge, and MTN have already invested in roads.
According to him, private sector participation would ensure transparency and efficiency in the use of the funds.Oyedele urged Nigerians to keep an open mind, adding that if the surcharge fails to achieve its purpose, the National Assembly could amend or remove it.
Source; https://punchng.com/
