Taiwo Oyedele says the proposed 5% fuel surcharge will not begin until the naira strengthens or oil prices fall, to avoid worsening Nigerians’ financial hardship.
Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr. Taiwo Oyedele, has said the proposed 5% fuel surcharge will not be implemented until Nigeria’s economic conditions improve — particularly when the naira appreciates or global crude oil prices fall.
Speaking at the Haulage and Logistics Magazine Conference in Lagos on Thursday, Oyedele explained that though the levy is meant to fund road maintenance, “introducing such a tax now would be insensitive.”
He said the surcharge, first introduced under former President Olusegun Obasanjo, allocates 40% of revenue to federal roads and 60% to states and local governments. “The idea is brilliant and already being implemented in more than 150 countries,” he noted.
Oyedele clarified that the Federal Roads Maintenance Agency (FERMA) had sought to begin collections after fuel subsidy removal, but the committee rejected it. He added that the charge would only take effect after ministerial approval.
He further assured that ongoing tax reforms aim to eliminate multiple taxation, reduce logistics costs, and exempt small transport businesses earning below ₦100 million annually from company income tax.