Nigeria Debates 5% Surcharge on Fuel
The debate over the implementation of a 5% surcharge on gasoline and diesel continues to stir controversy in Nigeria. As public opinion worries about another price hike, the chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, reminded that this is not a new tax, but a provision that has been included in the amended Federal Roads Maintenance Agency (FERMA) Act since 2007. According to him, this tax will only take effect on a later date set by the Minister of Finance and aims to finance transportation infrastructure to reduce logistical costs and, ultimately, inflation.
Economic Context Complicates the Situation
However, many economists and citizens doubt the timeliness of this measure in a context of strong economic pressure. Invited on Arise News, economist and energy expert Kelvin Emmanuel recalled that Nigeria has nearly 200,000 kilometers of roads, of which only 65,000 km are paved. The federal government is responsible for 18% of this network, states for 16%, and local communities for 66%, with the latter concentrating the majority of unpaved roads. According to Emmanuel, the surcharge could generate over 1,000 billion nairas in 2025, but the real challenge lies in the transparency of fund use and infrastructure governance.
Inflation and Economic Hardship
The economic context further complicates the situation. Fuel prices have jumped by 382% in two years, food inflation exceeds 40%, and general inflation is nearing 32%. Per capita income has fallen below $800, while the naira has strongly depreciated against the dollar, from 751 nairas per dollar in 2023 to over 1,500 in 2025. "Nigerians have already made enormous sacrifices, they are struggling to feed themselves and survive. Asking them to pay an additional 45 nairas per liter of fuel is unjustifiable as long as the government has not proven exemplary management of resources," Emmanuel denounced.
Need for Transparency and Accountability
The expert highlights the need for the state to account for the use of savings made since the removal of fuel subsidies in 2023. According to him, better management of oil revenues and increased transparency in fund allocation would allow for the financing of road infrastructure without imposing an additional burden on the population. In the background, the issue of trust in the state dominates: as long as Nigerians do not see real exemplary behavior and clear accounts, adherence to new taxes will remain fragile.
