Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has said that the proposed 5 per cent fuel surcharge will not take effect until Nigeria’s economic indicators, particularly the naira’s exchange rate and global oil prices, improve significantly.
Speaking at the Haulage and Logistics Magazine Conference & Exhibition held in Lagos on Thursday, Oyedele explained that while the surcharge is a well-intentioned policy aimed at funding road maintenance, introducing it now would further burden Nigerians already grappling with economic hardship.
“We said no introducing such a tax now would be insensitive,” Oyedele stated.
According to the tax expert, the fuel surcharge was first introduced under former President, Olusegun Obasanjo, to dedicate part of fuel revenues to road repairs, with 40 per cent earmarked for federal roads and 60 per cent for state and local government roads.
“The idea is brilliant and already being implemented in more than 150 countries,” Oyedele said, noting that most of Nigeria’s over 200,000 kilometres of roads remain in poor condition due to inadequate funding.
He clarified that although the Federal Roads Maintenance Agency (FERMA) had requested approval to begin collecting the levy following the removal of fuel subsidies, the committee rejected the proposal.
Oyedele said the committee had included the fuel surcharge in its draft tax law but introduced safeguards to prevent premature implementation.
“The surcharge is in the draft law, but it will only take effect when the Minister of Finance issues an official order,” he explained.
“For me, the right time will be when the naira strengthens or when crude oil prices drop, so the surcharge won’t lead to higher pump prices,” he added.
Relief Coming For Transporters, Logistics Operators
The committee chairman also assured stakeholders that the ongoing fiscal reforms would deliver tangible relief to the haulage and logistics sector by eliminating multiple taxation, reducing costs, and improving efficiency.
“We are not introducing new taxes; we are removing the many duplicated ones that frustrate transporters and increase prices,” Oyedele said.
Under the new tax framework, small transport and logistics companies with annual turnover below ₦100 million will be exempted from company income tax, while eligible operators will enjoy VAT refunds and other incentives.
Oyedele further emphasised that the reforms aim to simplify Nigeria’s complicated tax structure and ensure transparency in revenue collection and distribution.
“The goal is to make the tax system fair, efficient, and transparent, ensuring that all collections are properly accounted for and shared across all levels of government,” he concluded.
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