₦airaland Forum

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.”

Sheuns:
They told us proceeds from subsidy removal will fund infrastructure, that they have saved enough money. Now it’s tax on fuel they’ll use.

This doesn’t still stop them from borrowing billions of dollars to make a coastal highway.

In all we do, let’s try to be honest and fair.

helinues:
Taxing is not the problem only if the Nigerians are feeling the positive impact of the tax they have been paying

ayoolataiwo:
Abeg this man dey reason so,how can you tax people that can hardly make end meet to develop infrastructures despite the huge revenues from both oil and non oil sectors.A tailor that bought fuel to do his job due to epileptic power will pay extra charges for fuel.9ja 2 steps forward and 20 steps backwards mentality

fuckingAyaya:
Greed has been embedded in you already, even if you tax the masses to death you will still tax the dead to death. It's not your fault your fault, those who have stolen the common wealth of the country are never satisfied even if you give them all the money in world bank.
Wife 3time senator
Son in charge of all billboards
Daughter in charge of all revenue collected from all markets
You in charge of all revenue collected in Nigeria. While you pay some front desk miscreants 20k monthly to defend you.
How much are you looking for again in this life that will make you satisfied?
If you die and go to hell if you beg for water demons will throw plenty money at you as water.
NB: God hates those that worship money.

SarkinYarki:
It will fund nothing , it will be completed mismanaged and looted as ever ...

iwaeda:
Awon ologbon aye told us there is no 5%, under OBJ it was 1% to compensate for removal of toll gates. We told you, this man is TAX Master. Hope those who defend will eat there words and see Nigeria in good light, not just there party's property.

𝐐3. 𝐖𝐢𝐥𝐥 𝐭𝐡𝐞 𝐬𝐮𝐫𝐜𝐡𝐚𝐫𝐠𝐞 𝐚𝐩𝐩𝐥𝐲 𝐭𝐨 𝐚𝐥𝐥 𝐟𝐮𝐞𝐥 𝐩𝐫𝐨𝐝𝐮𝐜𝐭𝐬?

A3. No. Several energy products used by households are exempt. This includes household kerosene, cooking gas (LPG), and compressed natural gas (CNG). Clean and renewable energy products are also excluded to align with Nigeria’s energy transition agenda.

𝐐1. 𝐈𝐬 𝐢𝐭 𝐭𝐫𝐮𝐞 𝐭𝐡𝐚𝐭 𝐓𝐢𝐧𝐮𝐛𝐮’𝐬 𝐚𝐝𝐦𝐢𝐧𝐢𝐬𝐭𝐫𝐚𝐭𝐢𝐨𝐧 𝐢𝐧𝐭𝐫𝐨𝐝𝐮𝐜𝐞𝐝 𝐚 5% 𝐬𝐮𝐫𝐜𝐡𝐚𝐫𝐠𝐞 𝐨𝐧 𝐟𝐮𝐞𝐥?
A1. No. The surcharge is not new. It already exists under the Federal Roads Maintenance Agency (Amendment) Act, 2007 (FERMA Act). The new Tax Act only restates it for harmonisation and transparency. Hence, it was not part of the original tax reform bills submitted by the president to the National Assembly.

iwaeda:
https://gazettengr.com/5-fuel-tax-good-for-nigerians-will-fund-road-infrastructure-tinubu-govt/

TimeManager:
The Federal Government has revealed that the elimination of the petrol subsidy under President Bola Tinubu has resulted in savings of over $84 billion, which are now being channelled into the construction and rehabilitation of 40 key road projects across the country over the past two years.

This was disclosed in a policy brief released by the National Orientation Agency (NOA), titled “Two Years Later: Key Benefits of Subsidy Removal,” and made available to journalists over the weekend in Abuja.

The report, which reviewed the outcomes of the subsidy removal since May 29, 2023, noted that the policy averted a looming economic crisis.

It also enabled the Tinubu administration to clear long-standing financial liabilities, increase capital investments, and support the financial stability of state governments.

https://businessday.ng/news/article/84bn-saved-from-petrol-subsidy-now-financing-40-key-roads-report/?amp

helinues:
Taxing is not the problem only if the Nigerians are feeling the positive impact of the tax they have been paying

ogolemati:
you didn't tell us agbero chairman is back.more tax to nigerians by 2027 he will tax the air they breathe

obonujoker:
What about the already removed subsidy funds

What are they being used for?

chisomkachy:
Nigerian President Bola Tinubu’s first supplementary budget includes a fleet of SUVs for himself and his wife, a presidential yacht and the renovation of his villa amid a cost-of-living crisis for some of the poorest people in the world.

The proposal — which seeks additional funding beyond the annual budget approved by Tinubu’s predecessor — comes as the government asks Nigerians to persevere through pain caused in part by a raft of economic reforms ushered in by the new president. Africa’s most populous country faces rampant unemployment, soaring food prices and a plummeting currency.

Federal lawmakers approved the president’s request for extra spending on Thursday, but eliminated the provision of 5 billion naira ($6.01 million) to buy a presidential yacht. Instead, they doubled the allocation to a student loan fund to 10 billion naira, according Abubakar Bichi, chairman of an appropriations committee in the House of Representatives.

The lawmakers approved 1.5 billion-naira proposed to purchase SUVs for the office of First Lady Oluremi Tinubu — an amount larger than that allocated to many individual federal colleges. The supplementary budget also proposes almost 6 billion naira to purchase SUVs for the presidency — more than the amount initially allocated to fund a student loan program for poor families.


https://www.bloomberg.com/news/articles/2023-11-02/nigeria-budgets-for-suvs-and-yachts-amid-economic-hardship

Wallade:
I don't think the 5% petroleum tax is necessary since subsidy was removed on petroleum products.

The economic situation of the country and cost of living compared to the Personal income of the various households also suggests no need for the 5% petroleum tax.