Implementation of fuel levy will depend on Naira strength, oil prices – Oyedele
Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has clarified that the proposed 5% fuel levy will only be considered when Nigeria’s economic conditions improve—specifically, when the naira appreciates or global crude oil prices decline.
Speaking in an interview with Arise TV on Monday, Oyedele clarified that the proposed tax is purely conditional and not part of any immediate government plan. He explained that a stronger naira or a decline in international oil prices could allow the tax to be introduced without raising fuel prices for consumers.
He emphasised that if the tax were ever introduced, it must directly benefit citizens by improving infrastructure, reducing commute times, and increasing productivity. “It has to have real, visible impact,” he said.
Oyedele dismissed public speculation about an imminent surcharge, noting that there is no plan to impose a new fuel tax at this time. Instead, he said the focus remains on simplifying Nigeria’s complex tax system.
As part of the reforms, his committee is consolidating more than a dozen outdated tax laws into a single, streamlined framework aimed at improving compliance and transparency.
He also stressed that tax policies should not only solve present challenges but be designed to serve future generations through long-term national planning.
Should the 5% fuel tax eventually be introduced, Oyedele confirmed it would be administered by the Nigerian Revenue Service (NRS), rather than agencies like FERMA, to ensure proper governance and efficiency.
He added that any revenue from the tax would be ring-fenced for road infrastructure projects, ensuring that Nigerians can clearly see the value of what they’re paying for.
