Nigerians Reject Proposed 5% Fuel Tax as Citizens Warn of Rising Hardship
Story: written by Myra Chinonso September 19,2025
The Federal Government’s plan to introduce a five percent tax on every 10 litres of fuel purchased has sparked nationwide outrage, with many Nigerians warning that the move will worsen the already severe cost-of-living crisis.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, announced the proposed levy in Abuja last week, clarifying that the surcharge is not a new tax but a provision rooted in the Federal Road Maintenance Agency (FERMA) Act of 2007.
According to Edun, the inclusion of the surcharge in the 2025 Nigeria Tax Administration Act is intended for “harmonisation and transparency” rather than the immediate enforcement of fresh taxes.
“The five percent surcharge has existed since 2007. Its mention in the new law does not automatically mean it will be implemented immediately. No commencement order has been signed or prepared,” the minister explained.
Despite the clarification, Nigerians remain skeptical, citing previous government policies—such as the removal of fuel subsidies—that led to petrol prices skyrocketing from ₦167 per litre to between ₦865 and ₦1000.
Citizens React with Anger
Across social media and on the streets, citizens have condemned the proposed policy.
- Taiwo Oladosun, a Lagos-based real estate agent, described the tax as unfair: “Adding more charges on fuel is wrong. People are already struggling to survive under current conditions.”
- Johnson Olagunji, a resident, called for tighter regulation of fuel stations: “If this law will be applied, then at least ensure one litre is one litre. Pumps are often adjusted against buyers, making things worse.”
- Gabriel Adigun, a businessman who commutes daily, warned that transportation costs would skyrocket: “Families like mine, who rely on tight budgets, will be hit the hardest.”
- An Okada rider, Ozo Darlington, vented his frustration: “The cost of fuel is already draining us. Now they want to add more? Soon they’ll tax the air we breathe.”
Even fuel attendants expressed concerns, saying implementation would lead to more public outcry without visible benefits.
Labour and Political Leaders Oppose Policy
The Nigeria Labour Congress (NLC), Trade Union Congress (TUC), manufacturers’ groups, and politicians have also openly opposed the fuel tax proposal.
Former Labour Party presidential candidate Peter Obi strongly criticised the plan, questioning why Nigerians should shoulder more financial burdens at a time of widespread hardship.
“At a time when millions cannot afford transportation, the government wants to add a five percent tax on every litre of fuel. If revenues are rising, why not channel them into education, healthcare, and poverty reduction instead of burdening citizens further?” Obi wrote on X.
He urged the government to suspend the policy until citizens experience genuine improvements in living condition
For many Nigerians, the proposed fuel tax is a painful reminder of unfulfilled promises and deepening economic challenges. While the finance ministry insists no implementation date has been set, citizens remain unconvinced, fearing the measure could soon become another blow to household finances already stretched thin.
