FG to introduce fuel taxes when economy stabilises, Oyedele says

The Federal Government plans to introduce fuel taxes when the economy stabilises and Nigerians’ incomes can accommodate the additional costs, Minister of Finance and Coordinating Minister of the Economy Taiwo Oyedele has said.

Oyedele disclosed this in an interview with ARISE News on the sidelines of the 2026 IMF and World Bank Annual Meetings in Bangkok, Thailand.

He explained that the government would first consolidate its economic reforms, restore growth and improve household incomes before considering the introduction of additional fuel levies.

According to the minister, imposing extra taxes immediately after the removal of the petrol subsidy would have increased the financial burden on Nigerians.

“You remove subsidy, you can’t immediately impose taxes. That would be insensitive. You push the people to the wall,” he said.

Oyedele noted that fuel taxes account for between 20 and 80 per cent of petroleum prices in some countries, adding that several African nations impose multiple levies on fuel products.

He said the proposed taxes would be dedicated to funding infrastructure and developing strategic fuel reserves to help the country respond to potential supply disruptions and moderate price volatility.

“Not because we want to impose taxes, it will be because those amounts of taxes will be dedicated into road infrastructure, they’ll be dedicated into building our fuel reserve, that can help us moderate prices of fuel products, if anything happens,” he explained.

The minister added that the proposed arrangement could give the government the flexibility to suspend or reduce the levies when necessary to cushion the effects of market shocks.

He cited the experience of more than 50 countries that have reduced fuel taxes in response to changing economic conditions, arguing that Nigeria lacked a similar option because it did not previously have the taxes under discussion.

“This is what more than 50 countries around the world, they were reducing the taxes, but we had no taxes, there was nothing to reduce,” he said.

FG Rules Out Secret Introduction of Fuel Taxes

Oyedele assured Nigerians that the proposed taxes would not be introduced secretly, explaining that the process requires an official order published in the Federal Government Gazette before implementation.

“There has to be an order published in the gazette by the finance minister, which means we can’t do it in secret,” he said.

He maintained that the government would only consider introducing the levies when economic conditions had improved sufficiently and citizens could understand the rationale behind the policy and its expected benefits.

The minister’s comments come amid continuing debate over the impact of petrol subsidy removal, which followed President Bola Ahmed Tinubu’s inauguration in May 2023.

The policy led to a sharp increase in petrol prices and contributed to inflationary and cost-of-living pressures across the country.

Since then, the Federal Government has introduced various measures, including cash transfers and wage adjustments, aimed at easing the impact of economic reforms on vulnerable households.

Oyedele’s remarks indicate that the proposed fuel taxes remain dependent on improved economic conditions, with no immediate implementation date announced in the statement provided.

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