A coalition of stakeholders, political parties, and civil society organizations is vehemently opposing the Federal Government’s planned 5% surcharge on petroleum products, set for January 2026, warning it will exacerbate inflation, deepen poverty, and force business closures.
Widespread opposition has greeted the Federal Government’s plan to implement a 5% surcharge on refined petroleum products starting January 1, 2026, with stakeholders warning it will cripple businesses and worsen the hardship of Nigerians.
The tax, embedded in the Nigeria Tax Administration Act signed by President Bola Tinubu in June 2023, aims to boost non-oil revenue. However, critics argue it will further increase the pump price of petrol, which has already risen by 382% since the administration took office.
Executive Director of Policy Alert, Tijani Bolton, stated: “Nigerians are still reeling from the initial removal of fuel subsidies… As we speak, many Nigerian households… are dedicating over half of their income to fuel and they will still be the ones to bear the brunt of the planned surcharges.”
The backlash is unified across sectors. The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) declared the law could force its members to close. National President Dr. Billy Gillis-Harry said, “We shall find it very difficult to obey… The law is too hard on the people.”
Politically, the Labour Party’s 2023 presidential candidate, Mr. Peter Obi, questioned the timing on his X handle, asking, “When will Nigerians truly breathe?” He argued that if revenue targets are met, funds should first fund social services, not new taxes. Similarly, the African Democratic Congress (ADC) described the policy as “a cruel burden on struggling Nigerians.”
The Joint Action Front (JAF) vowed to mobilize citizens against the plan, with Secretary Abiodun Aremu calling it an “evil and wicked plan.” Economic analysts like Dr. Muda Yusuf of CPPE warned the levy risks triggering an inflationary spiral and eroding public trust, advising a strategic implementation with safeguards.
The Arewa Youths Assembly also urged the government not to transfer the cost of energy transition onto citizens, highlighting the broad-based nature of the discontent.